Viacom chief bullish on struggling studio

(Reuters)
Updated: 2007-02-15 08:28

BERLIN - Viacom Inc. chairman Sumner Redstone says his company's struggling Paramount Pictures unit is in the midst of a "major turnaround" and will "rise again" this year to become again one of Hollywood's leading studios.

Redstone, in Berlin to oversee the German launch of Comedy Central, told the Hollywood Reporter that Paramount's current lineup was "fantastic," and he predicted a major upswing in the first half of the year.

""Dreamgirls" has been nominated for eight Academy Awards. "Babel" has been nominated for a lot, including best picture," Redstone said.

" Steven Spielberg has a picture coming -- "Transformers." I've seen part of it; it is fantastic. "Norbit" opened to $34 million on its first weekend. We have another Indiana Jones (movie) coming up which will come in 2008. You will see us rising from the bottom to the top or very near the top in the first six months of this year."

Redstone said Paramount Pictures CEO Brad Gray is "doing just about all the right things."

While reluctant to discuss his bold decision last year to cancel the studio's costly production deal with Tom Cruise, Redstone said the move did send a signal to the industry.

"We are paying the talent too much. Because it is not the talent that makes the movie, it is the script. The play's the thing, as someone once said. And if you have a great script, the talent rushes to appear in it and at not too heavy a price."