Viacom's Headache: It's A Blockbuster

Viacom Inc. Chief Executive Sumner M. Redstone has a big problem. He runs a media giant with several promising businesses run by executives eager to expand their franchises. But owing to a huge debt load of about $10 billion and a stock that is 60% off its high, Viacom has to retrench to get its financial house in order.

Inevitably, those limitations have prompted some ambitious managers to jump ship. The latest casualty is Blockbuster Entertainment Group chief Bill Fields, hired away from Wal-Mart Stores Inc. barely a year ago and once hailed by Redstone as his possible successor. Fields abruptly left Viacom on Apr. 22. He wasn't available for comment, and a Viacom spokesman wouldn't say whether Fields was fired or quit. But Fields is expected to take a senior position at another large retailer shortly. The stock market reacted violently to the news: Viacom lost $1.6 billion of market value in the two days following the announcement.