Grey Stays at Paramount

Viacom has extended Paramount chairman Brad Grey's contract, set to expire next year, to 2014, the company announced on Wednesday. The move showed confidence in the executive who arrived as an untested studio leader in 2005 after a career as a talent manager. Grey bought DreamWorks for $1.5 billion, then lost it last year after principal Steven Spielberg chafed at the mismanaged relationship. The studio led market share in the domestic box office in 2007, largely due to DreamWorks, but managed to increase its share to 16.5% in 2008 with three of the top six biggest grosses of the year, including "Iron Man." "Under Brad's leadership, Paramount has once again become a home for creative innovation and great talent," Viacom CEO and president Philippe Dauman said in a statement.