Paramount Global CEO Bob Bakish is expected to announce his departure today after eight years at the top of the movie studio, broadcaster and streamer. Bakish has been with Paramount, and before that Viacom, since 1997.
The decision comes amid ongoing merger talks with Skydance Media. Here are the key details:
CEO Departure: Paramount Global’s board is preparing to remove Bob Bakish from his position as CEO Bakish will not participate in the quarterly earnings call. The board plans to rely on division heads while negotiating the potential merger with Skydance Media.
Trust Issues: Bakish has lost the trust of Shari Redstone, the controlling shareholder of Paramount Global. Redstone sought to oust Bakish before the company’s carriage negotiation with Charter Communications, a critical factor in determining the company’s value for the merger talks with Skydance.
Merger Talks: Paramount and Skydance are in exclusive talks until May 3, with the possibility of extending the window. Under the proposed deal, Bakish would leave Paramount, and Skydance’s CEO, David Ellison, would lead the company. Bakish privately expressed dissent against the merger, citing concerns about dilution of common shareholders.
Deal Structure: Approximately 50% of the merged company would be owned by Skydance and its private equity partners. Common shareholders would retain ownership of the remaining portion, allowing the company to continue trading publicly. The departure of Bob Bakish marks a significant development for Paramount Global as it navigates potential mergers and strategic decisions.
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