Paramount Global CEO Bob Bakish is stepping down as merger negotiations with Skydance Media continue. Bakish has been with Viacom since 1997 and became CEO of the company in 2016. After the merger of Viacom and CBS, he became CEO of the combined company in 2019, which was later renamed as Paramount Global. Bakish will be replaced by an “Office of the CEO” consisting of CBS president and CEO George Cheeks, Chris McCarthy, president and CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks, and Brian Robbins, head of Paramount Pictures and Nickelodeon.
The new leadership team at Paramount is working on a comprehensive plan to accelerate growth, develop popular content, streamline operations, strengthen the balance sheet, and optimize the streaming strategy. The company recently reported mixed results for the first quarter, with revenue up 6% driven by streaming and the Super Bowl. The direct-to-consumer streaming segment saw revenue rise 24%, with 3.7 million new subscribers for Paramount+. Paramount also reported a decrease in streaming losses, down to $286 million compared to $511 million in the same period last year.
The departure of Bakish comes as Paramount and Skydance Media are in negotiations for a possible merger. If the deal goes through, almost 50% of the merged company would be owned by Skydance and its private equity backers, with common shareholders owning the remainder of Paramount. Bakish has reportedly dissented against the merger, which could dilute common shareholders. It is also reported that Bakish lost the trust of controlling shareholder Shari Redstone, possibly leading to his removal as CEO to accelerate the Skydance deal.
Paramount has been in negotiations with cable company Charter Communications for the carriage of its TV networks, including CBS and MTV. The deadline for these negotiations is looming, adding to the uncertainty surrounding the company’s future. The special committee overseeing potential transactions and Skydance, backed by private equity firms KKR and RedBird Capital Partners, are working on how to value Skydance’s assets and determine the equity structure of the merged company. If the deal goes through, Skydance CEO David Ellison is expected to head Paramount.
Overall, despite the leadership change and ongoing merger negotiations, Paramount has reported positive results for the first quarter with revenue growth driven by streaming and advertising revenue. The new leadership team is focused on accelerating growth, developing popular content, and optimizing the streaming strategy. As the company navigates these changes, the industry will be closely watching how Paramount continues to evolve in the rapidly changing media landscape.
