He will continue to report to Dauman in what is a newly created post. Dooley's contract has been extended through 2016; his current one was to expire at the end of 2011.
The new COO's portfolio includes oversight of financial, strategic planning and communications functions, among others, although division CEOs such as Judy McGrath at MTVN will still report to Dauman. A new CFO will be named.
Dauman called Dooley a "partner and friend for well over two decades." Dauman joined Viacom in 1993, and Dooley in 1980.
The two rejoined Viacom in 2006 after Chairman Sumner Redstone removed CEO Tom Freston.
After CBS and Viacom merged, CBS head Mel Karmazin may or may not have insisted that Dauman and Dooley leave Viacom, where they were deputy chairmen.
They then formed DND Capital Partners, a private-equity firm that had positions in various entities, such as the Tennis Channel.
A 2006 Los Angeles Times report cited a Redstone autobiography recounting that after the pair left Viacom, Dauman told Redstone: "We'll both be around anytime you want us."