Paramount Replaces CEO With Trio

Paramount Global replaced CEO Bob Bakish with a trio of executives, the company announced on Monday in the middle of talks with David Ellison's Skydance Media about a possible merger.

The owner of the Paramount+ streaming service, the Paramount Pictures movie studio and cable networks including MTV, BET and Showtime announced the change just ahead of reporting better-than-expected earnings for the quarter ended in March.

Reuter reports a new Office of the CEO will be led by CBS President and CEO George Cheeks, Paramount Pictures studio chief Brian Robbins, and Chris McCarthy, head of Showtime, MTV and other networks, the company said.

Paramount is in exclusive talks with Skydance and is working to build its streaming business as it faces tough competition from Netflix and Walt Disney as viewership of cable TV declines

"We're finalizing a long-term strategic plan to best position this storied company to reach new and greater heights in a rapidly changing world," McCarthy said on the company's quarterly earnings call.

Bob Bakish

Analysts said the executive shakeup appeared ill-timed.

The new arrangement "looks like a car crash with clear divisions among key stakeholders," PP Foresight analyst Paolo Pescatore said in a written note.

"Why replace the CEO with three executives at a time when leadership is paramount (no pun intended) to the future success of the company?" Pescatore said.

Bakish had led the company since the 2019 merger with CBS to form ViacomCBS, later branded as Paramount Global. He took the helm of Viacom in 2016.

McCarthy said the three new leaders had "worked together collaboratively for years and have known each other for decades."

For the quarter ended in March, Paramount reported adjusted earnings per share of 62 cents, well ahead of the 36 cents consensus of analysts. Revenue came in shy of expectations at $7.69 billion. Wall Street had forecast $7.73 billion. Advertising revenue rose 14%, boosted by the CBS broadcast of the Super Bowl in February.

The company's streaming unit reported gains. Paramount+ added 3.7 million subscribers for a total of 71 million, beating analyst expectations.