TheStreet

Warner Brothers Entertainment Chairman and CEO Kevin Tsujihara is stepping down following allegations of sexual misconduct, the studio said Monday.

WarnerMedia CEO John Stankey announced Tsujihara's exit Monday, saying it was in the studio's "best interest."

WarnerMedia started an investigation earlier this month after a Hollywood Reporter story revealed text messages between Tsujihara and British actress Charlotte Kirk going back to 2013. Tsujihara is alleged to have pushed for auditions for Kirk with whom he was having a sexual relationship, according to media reports. He released a memo apologizing to his colleagues at WarnerMedia for his behavior.

WarnerMedia said it is continuing its investigation into allegations of misconduct against Tsujihara with his cooperation.

In a statement, Tsujihara said he realized "my continued leadership could be a distraction and an obstacle to the company's continued success." Warner Bros. parent WarnerMedia said the company would unveil an interim leadership team on Tuesday.

Tsujihara succeeded Barry Meyer as CEO on March 1, 2013, and as chairman in December 2013, having previously served as president of Warner Bros. Home Entertainment. Upon assuming the role of CEO, Tsujihara became the first Asian American to run a major Hollywood studio. Tsujihara joined Warner Bros. Entertainment, Inc. in 1994 to help manage the company's interest in Six Flags theme parks.

Shares of the parent company A&T (T - Get Report)  were up slightly to $30.76.

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