Shares of Paramount Global dropped more than 7% in intraday trading on Wednesday, reaching a 14-year low before recovering to close down 4.3%. The drop came as reports emerged that four board members are preparing to depart amid merger talks with Skydance Media, a potential partnership with Larry Ellison’s son. Paramount’s shares hit a low of $10.12, the lowest point since 2010, before closing at $10.50.
The departure of the four board members – Dawn Ostroff, Nicole Seligman, Frederick Terrell, and Rob Klieger – was reported by the Wall Street Journal, citing sources familiar with the matter. Their exit comes as Paramount’s controlling shareholder reaches a tentative agreement with Skydance for a majority stake in the company, following a scrapped merger plan with Warner Bros. Discovery. This potential partnership could provide a much-needed boost to the media conglomerate.
Paramount has faced significant challenges this year, with its shares dropping over 26% since January 1 amid failed merger talks and intense competition from streaming rivals like Netflix, Hulu, and Disney. The company has experienced highs and lows on Wall Street, including a recent peak and a 15% increase last week. In the midst of these challenges, the controlling shareholder reportedly opted for a deal with Skydance, signaling a new direction for Paramount.
In an effort to boost revenue, Paramount+ raised the price of its monthly subscription plan from $4.99 to $5.99, as well as its ad-free premium plan, which includes Showtime, from $9.99 to $11.99. This price hike aligns with similar moves from other streaming competitors, such as Disney+, Hulu, Netflix, NBCUniversal’s Peacock, and HBO Max. With streaming services increasingly cracking down on account sharing, these price increases may become more common in the industry.
As Paramount navigates the changing landscape of the media industry, the departure of key board members and the potential partnership with Skydance signal a new chapter for the legacy media company. Despite facing challenges in the market and increasing competition from streaming services, Paramount is taking steps to adapt and evolve. The company’s leadership changes and strategic decisions will continue to shape its future trajectory and position in the industry. Investors and stakeholders will be watching closely as Paramount Global moves forward with its new partnership and restructuring plans.
