Forbes estimates that CEO Larry Ellison is worth around $146.2 billion as of Monday evening, making him the fifth wealthiest person in the world. Ellison earned most of his fortune from his tech company, Oracle. Paramount Global chief executive Bob Bakish is stepping down from his position at the entertainment company and CBS parent. The announcement comes amid reports of tensions surrounding a potential merger with Skydance Media, which has caused controversy among shareholders.
Bakish’s departure from Paramount was announced in a press release thanking him for his contributions to rebuilding the company’s culture. He reportedly opposed the merger with Skydance, leading to tensions with Paramount Global’s controlling shareholder, Shari Redstone. The company stated that Bakish will be replaced by an “office of CEO” consisting of three top executives. He will also be leaving Paramount’s board of directors. Bakish’s severance package is estimated to be $50.6 million, with more than $30 million to be paid in cash over two years after his termination.
Paramount has been considering a merger with Skydance, founded by Larry Ellison’s son, David. A tentative agreement was reached in early April, in which Skydance would buy Redstone’s controlling stake in the company. However, the merger has been met with controversy among Paramount’s board of directors, with four members reportedly planning to leave following news of the tentative agreement. Bakish’s opposition to the merger is said to have influenced Redstone’s decision to oust him before renewal negotiations with Paramount networks.
Paramount has been facing struggles for months, partly due to competition from streaming rivals. A potential partnership with Warner Bros. Discovery also recently fell through. To sweeten the deal with Skydance, a $3 billion cash infusion was offered to pay down debt and buy back shares. This would also give Paramount shareholders a larger stake than initially planned. Paramount’s shares have fallen approximately 15% since the beginning of the year.
The potential merger with Skydance and the tensions surrounding Bakish’s departure have garnered significant attention within the entertainment industry. Paramount continues to navigate challenges in a rapidly evolving media landscape, with the outcome of the merger and its impact on the company’s future prospects remaining uncertain. Larry Ellison’s wealth and influence as a key player in the tech industry add an additional layer of complexity to the unfolding story. In the meantime, Paramount faces ongoing strategic decisions as it seeks to position itself for success in the competitive entertainment market.
