Paramount Global CEO Bob Bakish is potentially facing removal from his position amidst escalating tensions at the global entertainment firm as it considers a merger with Skydance Media. Reports indicate that Bakish’s strained relationship with the company’s controlling shareholder, Shari Redstone, may be the driving force behind his potential ousting. Bakish has allegedly opposed the merger with Skydance Media, leading Redstone to consider his removal ahead of renewal negotiations with Charter Communications for CBS and other Paramount networks, which are crucial for solidifying Paramount’s value for the merger.
The Wall Street Journal first reported the news of Paramount’s consideration to oust Bob Bakish, with the possibility of establishing a committee to run the company on an interim basis. However, no official decision has been made yet. Paramount has declined to comment on these reports. Bob Bakish is not expected to be on the call for Paramount’s first-quarter earnings on Monday, according to CNBC. The potential ousting of Bakish comes as Paramount Global faces financial challenges, with its stock value dropping significantly in recent months, closing at $11.91—more than 50% down from its 52-week high.
Paramount Global was formed from a $12 billion merger between CBS and Viacom in 2019, with Bakish appointed as Viacom’s CEO in 2016 and retaining the role after the merger. Reports of potential acquisition talks have been circulating for months, coinciding with the company’s underperformance financially. Shari Redstone reportedly reached a tentative agreement to sell her controlling stake to Skydance Media in April, with reports of four board members expected to leave Paramount Global this spring. Additionally, Sony and Apollo Management were in talks for a joint buyout of the company, with Apollo previously offering $11 billion for the company’s studios in March.
The tensions within Paramount Global have also highlighted issues surrounding CEO compensation in the entertainment industry. New data revealed that Bob Bakish earned $31.3 million in 2023, a 2% decrease from the previous year. This disparity in compensation comes at a time when the company is facing significant challenges and potential leadership changes. The future of Paramount Global remains uncertain as the company navigates through mergers, acquisitions, and leadership changes in the midst of financial struggles and shareholder disputes.
As Paramount Global prepares to announce its first-quarter earnings and faces the potential removal of its CEO, the entertainment industry is closely watching the developments within the company. The outcome of these discussions and negotiations could have a significant impact on the company’s future direction, as well as the broader landscape of the entertainment industry. The ongoing turmoil and uncertainty surrounding Paramount Global highlight the challenges faced by major entertainment firms in an ever-changing and competitive market.
