Viacom Picks Time Warner Exec for Top Deal-Making Post

In one of its most significant hires since buying Paramount Communications, Viacom Inc. named Time Warner executive Thomas McGrath on Wednesday to a top deal-making position in the group that oversees the company’s movie studio, television operations and other entertainment units.

McGrath, 39, was named to the new post of executive vice president of the Viacom Entertainment Group, in a move that had been rumored in entertainment circles since last month. He reports directly to Viacom Entertainment Chairman Jonathan L. Dolgen and will be based at the Paramount Pictures lot in Hollywood.

In a separate move, veteran TV executive Lucie S. Salhany was named president and chief executive of the United Paramount network, the fifth network the studio is launching. The Salhany move was also expected. The former Fox Broadcasting Co. chairwoman, who also served an earlier stint at Paramount, will report to an operating committee headed by Kerry McCluggage, who chairs the Paramount Television Group, and Evan Thompson, president of Chris-Craft’s TV division.

Viacom’s new executive, McGrath, was previously president of Time Warner International Broadcasting, and senior vice president of business development for Time Warner Inc.’s Home Box Office. His principal job was setting up television deals overseas.

In separate interviews, Dolgen and McGrath emphasized that McGrath’s new job will not involve operations, but will emphasize the planning and implementation of strategic deals. McGrath added that he will not be involved in the individual film deals that studio executives traditionally negotiate.

Sources suggested that McGrath’s most immediate task will be helping Viacom divest some assets, notably its 50% stake in the 350-screen Cineamerica chain of theaters--known for its Mann Theaters--and also its Famous Music publishing unit.

McGrath is also likely to get involved in helping Paramount set up independently financed production deals at the studio, such as the recent one Dolgen negotiated with Douglas/Reuther Productions.

Dolgen said he hired McGrath largely because of his “great transactional skills,” noting that it’s hard to find people with good deal-making abilities at a time when industry transactions are becoming increasingly sophisticated.