Three senior executives will be holding position in the Office of the CEO as news breaks that Paramount Global’s chief executive and president is stepping down from the role with an estimated severance package of over $50 million. Bakish joined Paramount Global when it was Viacom in 1997, working in various operations roles before becoming CEO in 2016. Three years later, he was promoted to CEO of the freshly merged Viacom and CBS companies.
Shari Redstone, the heir controller of parent company National Amusements, is set on unloading Paramount as it deals with the rapid decline of its traditional TV business units and a shrinking stock, shares going from $40+ in 2019 to less than $13 in 2024. The stock increased nearly 5% in midday trading upon the Monday announcement of Bakish’s departure and the implementation of the interim executive consortium, led by Brian Robbins (Paramount Pictures/Nickelodeon), George Cheeks (CBS), and Chris McCarthy (Showtime/MTV).
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“Paramount Global includes exceptional assets and we believe strongly in the future value creation potential of the Company. I have tremendous confidence in George, Chris and Brian,” Redstone, Chair of the Board, said. “They have both the ability to develop and execute on a new strategic plan and to work together as true partners. I am extremely excited for what their combined leadership means for Paramount Global and for the opportunities that lie ahead.”
A few offers to buy are swirling the media conglomerate, a portfolio consisting of legacy studio Paramount Pictures, Paramount+, Showtime, MTV, BET, VH1, Comedy Central, Nickelodeon, and CBS. Culver City legacy studio Sony Pictures and private equity firm Apollo Global Management have expressed interest in making a deal to buy Paramount Global as a joint entity.
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However, National Amusements temporarily stopped all other potential negotiations for a month and is currently in exclusive talks with David Ellison of Skydance Media, which is set to conclude by May 3. Skydance has produced many Paramount films, including Top Gun: Maverick, a 2022 film that amassed over $1.4 billion worldwide.
There’s concern a deal with Skydance Media may not be in the best interest of shareholders and would mainly serve Redstone over all other stakeholders in the company. Also adding pressure, the expiring Charter distribution contract sunsets by the end of April. Another sentiment based in a rumored transaction is that Paramount may buy Skydance Media at an inflated price, further compromising its shareholders.
In the final hours of talks transpiring for months, Skydance is adding a $3 billion cash infusion incentive, offering an opportunity for Paramount Global to cut its debt, buy back stock, and put shareholders at ease. Paramount is said to be considering a majority of the minority shareholders’ vote for approval.
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