Paramount CEO Bob Bakish is reportedly on his way out as top shareholder Shari Redstone has lost confidence in his leadership. The New York Times reports that Bakish—who has led the company since 2016—could depart as early as next week, even though it is in talks with Skydance about a possible merger. Sources told the newspaper that Redstone faults Bakish, 60, for not closing important deals, like the sale of Showtime and BET, and that some of Bakish’s lieutenants have raised questions with the board. It’s not clear who would replace Bakish if he does leave. Under one scenario, Paramount would create an Office of the CEO, which its tops honchos would run, but it could also appoint an interim chief executive. Paramount’s streaming service is not profitable, and the company stock price has plunged since 2019.
Paramount would be run by an “office of the C.E.O.” led by division chiefs like Brian Robbins, the head of the Paramount movie studio; George Cheeks, the top executive of CBS; and Chris McCarthy, president of Paramount’s entertainment and youth brands. The company could also choose to put an acting chief executive in place.
is preparing to announce the departure of its chief executive, Bob Bakish, as soon as next week, according to three people with knowledge of the matter, a sudden development even as the company is exploring a merger.
The impending move is a result of Mr. Bakish’s worsening relationship with Shari Redstone, the company’s controlling shareholder, the people said, asking not to be identified discussing a delicate matter. Ms. Redstone grew frustrated with what she saw as his inability to get important deals across the finish line, including a sale of the Showtime and BET cable channels, the people said.
Two people familiar with the matter said several of Paramount’s senior executives had expressed reservations about the direction of the company to a representative of the board of directors in recent weeks, further eroding Mr. Bakish’s standing with Ms. Redstone.
Our Coverage of the Investment World
- Jolting the Markets: The markets are mercurial but their tone has thoroughly changed — from the sky-is-the-limit bullishness that dominated recently to a mood of heightened uncertainty and measured self-restraint.
- Getting a Voice: BlackRock, State Street and Vanguard are giving investors voting power on environmental, social and management issues. It’s not true shareholder democracy, but it’s progress.
- Crypto Funds: New investment funds that hold Bitcoin have begun trading, and it might be tempting to invest in them. Should you?
- Sustainable Funds: The money flowing out of funds that invest in companies with environmental, social and governance principles has gone from a trickle to a torrent as investors sour on a sector hit by greenwashing concerns, red-state boycotts and boardroom debates.
The company is in talks to merge with Skydance, a media company controlled by David Ellison, the tech scion and Hollywood producer. It is also negotiating a lucrative deal to keep channels like Nickelodeon and MTV on the Charter cable system.
ADVERTISEMENTSKIP ADVERTISEMENT
National Amusements, Paramount’s owner, is contemplating various options to replace Mr. Bakish, 60, who has led Paramount and its predecessor company, Viacom, since 2016 and has worked at the company since 1997. In one possibility, Paramount would be run by an “office of the C.E.O.” led by division chiefs like Brian Robbins, the head of the Paramount movie studio; George Cheeks, the top executive of CBS; and Chris McCarthy, president of Paramount’s entertainment and youth brands. The company could also choose to put an acting chief executive in place.
Paramount declined to comment. The Wall Street Journal earlier reported that Paramount’s board was considering replacing Mr. Bakish.
Like many media companies, Paramount has struggled in recent years to get its streaming business off the ground as audiences for its cable channels have deteriorated. Paramount is losing hundreds of millions of dollars annually on its streaming business, Paramount+, though its losses have slowed, and the company’s share price has continued to sink as investors have become increasingly cautious about traditional media.
Because of these challenges, Paramount has long been considered an acquisition target by rivals looking to bulk up their content libraries and maximize their leverage in cable negotiations. Things began to heat up at the end of last year when Ms. Redstone referred Skydance’s interest in Paramount to the company’s board, which formed a special committee to consider the deal.
Paramount now is deep in talks with Skydance to shape what would be a complex deal. Ms. Redstone controls Paramount through National Amusements and has signed off on a potential deal. But Paramount’s special committee must also sign off.
Editors’ Picks
A Novelist Who Finds Inspiration in Germany’s Tortured History
What’s the Best Way to Salt Scrambled Eggs?
The International Date Line Is ‘Pretty Arbitrary.’ Here’s Why.SKIP ADVERTISEMENT
ADVERTISEMENTSKIP ADVERTISEMENT
The deal being discussed would give Ms. Redstone a big payout and Paramount shareholders stock in a new company. That structure, along with the fact that the private equity firm Apollo Global Management has been talking about teaming up with Sony in an alternative all-cash bid, has led to objections to a sale by some shareholders.
A 30-day period of exclusive talks between the two sides is set to expire in early May.
Paramount is also planning to report earnings on Monday, putting the company in a tricky spot with analysts who will be seeking an explanation for Mr. Bakish’s sudden departure. Losing its chief executive is likely to invite questions from investors about the way the sales process is being handled. It could also weaken Paramount’s hand in those negotiations.
Read it at The New York Times
