Amidst the mergers and acquisitions drama enveloping Paramount Global, CEO Bob Bakish is reportedly set to resign after eight years at the helm of Shari Redstone’s media empire. Bakish’s departure is anticipated to occur as early as Monday, under pressure from mounting circumstances.
According to multiple outlets, three top entertainment executives would take charge: Paramount Pictures CEO Brian Robbins, CBS CEO George Cheeks, and Showtime/MTV Entertainment Studios chief Chris McCarthy.
Having been with Paramount and its Viacom predecessor since 1997, Bakish was recruited by Redstone in 2016 to restore order to a company plagued by public legal disputes among shareholders and power struggles between Redstone and former Viacom CEO Philippe Dauman. News of Bakish’s impending exit surfaced first in the Wall Street Journal on Friday.
Bakish’s dismissal occurs during a challenging period for the company as its traditional TV and movie studio businesses face decline amid industry headwinds. Additionally, Bakish’s relationship with controlling shareholder Shari Redstone had soured, with Redstone reportedly seeking an exit.
Redstone, faced with the decline of her family’s media empire, is in a delicate position. While she aims to avoid selling off the company’s assets, including CBS, MTV, Nickelodeon, BET, and Paramount Pictures, common shareholders are wary of the proposed deal with Skydance, which would offer a premium for Redstone’s family shares.
Currently, Paramount is in an exclusive 30-day negotiation period with David Ellison’s Skydance Media, joined by investment firms RedBird Capital and KKR. Skydance recently sweetened its offer by $1 billion, with a portion earmarked for Paramount’s nonvoting shareholders. However, negotiations with Skydance have been challenging, particularly regarding the allocation of proceeds to common shareholders and Paramount’s debt repayment.
Bakish’s opposition to the Skydance transaction, coupled with questions raised by senior company executives about his leadership and long-range plan, hastened his departure. Bakish had shown more openness to a proposed deal with private equity firm Apollo Global Management, which has offered $26 billion, including Paramount’s debt assumption. Sony Pictures Entertainment has been in talks to join this effort, which could potentially involve breaking up the company.
REELated:
Amid prolonged negotiations with Skydance, it has become apparent that Skydance CEO David Ellison would assume leadership of the expanded Paramount-Skydance operation, with RedBird senior executive Jeff Shell serving as his second-in-command, overseeing day-to-day operations. Bakish’s future role in the company appears uncertain, with no indication of a position being carved out for him.
A representative for Paramount Global declined to comment on the matter. The company is scheduled to report its first-quarter earnings on Monday, during which Bakish will notably not participate in the customary conference call with analysts, as reported by CNBC.
Bakish’s departure from the CEO role has been widely anticipated once the sale process concludes, regardless of the buyer.
Paramount Global has faced significant challenges over the past year, including a declining stock price and consecutive quarters of weak earnings, exacerbated by losses in its streaming division. CNBC further reported that Bakish’s opposition to the merger plan with Skydance has accelerated his exit from the company.
Yhe entertainment company reported $7.68 billion in revenue for the first quarter, up nearly 6% from the previous year, driven partly by increased streaming revenue. However, the company also reported a net loss, reflecting challenges in its streaming division and declining TV ratings.
Despite Bakish’s departure and the leadership reshuffle, Paramount Global’s stock saw a slight increase, reflecting cautious optimism amidst ongoing uncertainties about the company’s future.
Follow us on Facebook, X and Instagram
