The company said that its vice chair, Shari Redstone, the Viacom board and its new interim CEO Thomas Dooley believe the studio's leadership "can return Paramount to success."

The statement comes amid speculation within the industry that Viacom may replace Grey on the heels of a shakeup at the media company, which owns Paramount, Nickelodeon and Comedy Central.

On Saturday, Viacom announced a settlement with controlling shareholder Sumner Redstone, by which its Viacom CEO Philippe Dauman had been replaced by his longtime right-hand man, Chief Operating Officer Thomas Dooley. Dooley will be interim CEO until Sept. 30, the end of Viacom’s fiscal year.

Under the settlement, Dauman will stay on as non-executive chairman through Sept. 13 and be allowed to present to the Viacom board his plan to sell a 49-percent stake in Paramount Pictures.

As Reuters first reported in July, Chinese real estate and entertainment conglomerate Dalian Wanda Group has held talks with Viacom about acquiring the Paramount stake.

Since the settlement was announced, industry insiders have been speculating that Viacom may decide to replace Grey as head of Paramount.

The settlement marked the end of a legal battle between Dauman and Viacom board member George Abrams over their removal by Sumner Redstone from the Sumner M. Redstone National Amusements Inc Trust in May.

(Reporting by Jessica Toonkel; editing by Nick Zieminski)

By Jessica Toonkel