Paramount Global CEO Steps Down Amid Divisions Over Potential Skydance Merger
Latest Twist as Company Considers Skydance Deal; Sony and Apollo Prepare Counter-Offer
The moment of truth is approaching for Paramount Global. This week, the Hollywood group controlled by Shari Redstone’s National Amusements is expected to reach a conclusion on merger discussions with Skydance Media, while also preparing for another potential bid from Sony and Apollo. As the board negotiates a possible change in control of the entertainment sick giant, CEO Bob Bakish was fired on Monday and replaced by a management committee: Film and Kids Programming Chief Brian Robbins, Showtime/MTV head Chris McCarthy, and George Cheeks, who leads CBS, will run the company.
Bakish has worked for Paramount and its predecessor, Viacom, for more than two decades. Redstone chose him as CEO of Viacom in 2016, and he took over leadership of the entire entity after it merged with CBS in 2019. Despite being considered a loyalist to Redstone, Bakish clashed with her over the Skydance offer, alongside other shareholders who argue that the plan favors Redstone while excluding them.
Skydance has maintained a close relationship with Paramount, co-producing several hits with the Hollywood major, including ‘Top Gun: Maverick’ and ‘Mission Impossible.’ Recently, David Ellison, the Skydance CEO backed by his billionaire father, Oracle founder Larry Ellison, and private equity groups RedBird and KKR, proposed to purchase the voting shares held by Shari Redstone and her family and to merge the two companies, assuming leadership of Paramount as the new CEO.
Some Paramount shareholders oppose the proposed structure and have threatened legal action if it proceeds. Bakish didn’t want this deal to take off either, and his dissent cost him his long-time job.
His expected ousting is the latest twist in a messy and prolonged drama at Paramount Global. The company’s diverse portfolio includes CBS, MTV, Comedy Central, Nickelodeon (home to SpongeBob and Paw Patrol), and, of course, Paramount Pictures, the storied Hollywood company that delivered milestones such as The Godfather, Grease, Titanic, and the Indiana Jones franchise, just to name a few.
Amidst this tumultuous sales process, the company reported first-quarter earnings that beat Wall Street estimates, boosted by its broadcast of the Super Bowl in February and reduced losses from its streaming service.
During this tumultuous sales process, the company reported first-quarter earnings that beat Wall Street estimates, sustained by its broadcast of the Super Bowl in February and narrower losses from its streaming service. But the general trend indicates that the giant is limping, losing billions of dollars on streaming while struggling with the long-term decline of its broadcast and cable television channels.
Source: Nbc news
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Latest Twist as Company Considers Skydance Deal; Sony and Apollo Prepare Counter-Offer
The moment of truth is approaching for Paramount Global. This week, the Hollywood group controlled by Shari Redstone’s National Amusements is expected to reach a conclusion on merger discussions with Skydance Media, while also preparing for another potential bid from Sony and Apollo. As the board negotiates a possible change in control of the entertainment sick giant, CEO Bob Bakish was fired on Monday and replaced by a management committee: Film and Kids Programming Chief Brian Robbins, Showtime/MTV head Chris McCarthy, and George Cheeks, who leads CBS, will run the company.
Bakish has worked for Paramount and its predecessor, Viacom, for more than two decades. Redstone chose him as CEO of Viacom in 2016, and he took over leadership of the entire entity after it merged with CBS in 2019. Despite being considered a loyalist to Redstone, Bakish clashed with her over the Skydance offer, alongside other shareholders who argue that the plan favors Redstone while excluding them.
Skydance has maintained a close relationship with Paramount, co-producing several hits with the Hollywood major, including ‘Top Gun: Maverick’ and ‘Mission Impossible.’ Recently, David Ellison, the Skydance CEO backed by his billionaire father, Oracle founder Larry Ellison, and private equity groups RedBird and KKR, proposed to purchase the voting shares held by Shari Redstone and her family and to merge the two companies, assuming leadership of Paramount as the new CEO.
Some Paramount shareholders oppose the proposed structure and have threatened legal action if it proceeds. Bakish didn’t want this deal to take off either, and his dissent cost him his long-time job.
His expected ousting is the latest twist in a messy and prolonged drama at Paramount Global. The company’s diverse portfolio includes CBS, MTV, Comedy Central, Nickelodeon (home to SpongeBob and Paw Patrol), and, of course, Paramount Pictures, the storied Hollywood company that delivered milestones such as The Godfather, Grease, Titanic, and the Indiana Jones franchise, just to name a few.
Amidst this tumultuous sales process, the company reported first-quarter earnings that beat Wall Street estimates, boosted by its broadcast of the Super Bowl in February and reduced losses from its streaming service.
During this tumultuous sales process, the company reported first-quarter earnings that beat Wall Street estimates, sustained by its broadcast of the Super Bowl in February and narrower losses from its streaming service. But the general trend indicates that the giant is limping, losing billions of dollars on streaming while struggling with the long-term decline of its broadcast and cable television channels.
Source: Nbc news
Share:
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