The $18bn impairment charge was taken to reduce the value of goodwill and intangibles relating to its outdoor advertising business and radio operation Infinity Broadcasting, which has suffered.
Infinity represents around 10% of Viacom, but was the weakest part of the media giant's business as radio sales remained static at $2.1bn and profits dropped from $975m in 2004 to $918m. Stern left Infinity for digital radio network Sirius Satellite Radio, where he starts next year, after a controversial interview with Paris Hilton's ex-boyfriend Rick Solomon.
The global media company, which also owns Nickelodeon and Paramount Pictures, reported a total loss of $18.44bn after it was hit by increased competition.
Viacom said its fourth-quarter net loss totalled $10.99 a share and compares with a net loss of $385.4m, or 22 cents a share, for the same quarter the previous year.
For the full year, Viacom revenues increased 8% to $22.5bn from $20.8bn the year before. Advertising revenues increased 11%, led by growth of 21% in cable networks and 11% in television, which helped to offset declines in radio and entertainment.
Viacom's Blockbuster movie-rental unit suffered from increasing competition in part due to the rise in online DVD rental services, which have taken off rapidly.
The company said that fourth-quarter revenue increased 6% to $6.3bn from $5.9bn, led by double-digit increases in the Cable Networks segment.
Sumner Redstone, chairman and chief executive officer of Viacom, said: "Having adjusted the valuations of our radio and outdoor businesses to reflect emerging business trends and the competitive environment, we are now positioned to fully focus our efforts on the company's fast-growing assets."
Viacom said it expects to deliver mid single-digit growth in revenues and operating income, and high single-digit growth in earnings per share in the future.
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