Paramount Global CEO Bob Bakish steps down amid acquisition talks
In a significant development, Paramount Global has announced that its CEO, Bob Bakish, is stepping down. This news comes amid ongoing discussions for the media giant to be acquired by Skydance Media. Bakish (60) has been at the helm of the company since 2019, following the merger of Viacom and CBS Corporation, under controlling shareholder Shari Redstone's guidance.
Here's what Redstone had to say
Redstone acknowledged Bakish's significant contributions to the company. She stated, "The Board and I thank Bob for his many contributions over his long career, including in the formation of the combined company as well as his successful efforts to rebuild the great culture Paramount has long been known for. We wish him all the best."
Interim leadership trio announced
Following Bakish's departure, Paramount Global will be led by a trio of leaders. These include Brian Robbins, head of Paramount Pictures; Chris McCarthy, leader of Showtime and MTV Entertainment Studios; and George Cheeks, chief executive of CBS. This interim leadership team will guide the company through its ongoing acquisition negotiations with Skydance Media.
Paramount's struggles amid industry shift
Paramount, known for producing hit franchises like Top Gun, Star Trek, and Transformers, has faced challenges due to its heavy reliance on cable television. This dependence has proven problematic in maintaining profitability, as the industry rapidly transitions to streaming platforms. Consequently, Paramount's stock (PARA) has seen a nearly 50% decline over the past year.
Efforts to offset declining cable revenues
In an effort to counteract the declining cable revenues, Paramount invested billions into its own streaming service, Paramount+. Despite accumulating 71.2 million subscribers, the service has struggled to compensate for linear losses due to a limited content library. Many believe that a merger with Skydance Media could significantly benefit Paramount.
Skydance's proposed investment in Paramount
Skydance Media has committed to investing at least $3 billion into a combined entity with Paramount Global, to reduce debt and buy back stock. The proposed agreement values Skydance at around $5 billion. However, some shareholders have expressed concerns that the deal may primarily benefit Redstone, and have urged Paramount's board to explore other alternatives.
