Paramount Global announced Monday the resignation of CEO Bob Bakish.
Paramount Global is undergoing a significant leadership change amid considerations of a potential merger or sale. The company announced that Bakish is stepping down as CEO. Bakish, who started at Paramount’s predecessor Viacom in 1997 and later led the merged Viacom and CBS in 2019, reflected on his career in an email to employees.
“When I was asked to serve as interim CEO in 2016, I thought it would be a month-long gig. Seven years later, I can truly say the opportunity to lead this incredible company has been an unexpected but most welcome gift, and the greatest honor of my professional life,” he said, according to CBS News.
Paramount Global said Monday that CEO Bob Bakish is stepping down from his role, a major management shift at the media and entertainment company as it considers a potential merger or sale. https://t.co/oPfJnvWM0O
— CBS News (@CBSNews) April 29, 2024
Paramount revealed plans to create an Office of the CEO following Bakish’s departure. This new leadership structure will consist of three senior executives from Paramount Global: George Cheeks, CEO of CBS; Chris McCarthy, CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks; and Brian Robbins, CEO of Paramount Pictures and Nickelodeon. Shari Redstone, Chair of the Board, expressed her full confidence in the trio, commending their ability to collaborate and their strategic vision.
“Paramount Global includes exceptional assets and we believe strongly in the future value creation potential of the Company. I have tremendous confidence in George, Chris and Brian. They have both the ability to develop and execute on a new strategic plan and to work together as true partners. I am extremely excited for what their combined leadership means for Paramount Global and for the opportunities that lie ahead,” Redstone said in a statement.
FILE PHOTO: The logo of Paramount Pictures studios is pictured after the Writers Guild of America (WGA) said it reached a preliminary labor agreement with major studios in Los Angeles, California, U.S., September 24, 2023. REUTERS/David Swanson/File Photo
Amidst the management change, reports suggest that Redstone, the controlling shareholder of Paramount Global, is considering selling the company amid financial decline. Despite the allure of selling to tech giants, no comprehensive deal emerged, however it was reported that the company has entered exclusive talks with Skydance Media, a company led by David Ellison. (RELATED: Rupert Murdoch Steps Down As Chairman Of Fox And News Corp)
The negotiations are shaped by the company’s ownership dynamics. Redstone, who controls 77% of Paramount’s voting shares, is reportedly considering selling her stake to Skydance for $2 billion as part of a larger merger that would see other shareholders receive stock in the combined entity, The Wall Street Journal (WSJ) stated.
Paramount, with significant assets like CBS and MTV, reportedly struggles in a transforming media landscape marked by streaming growth and cable TV’s downturn. Recent strategies include cutting costs and possibly selling parts like BET to manage its $14 billion debt, according to WSJ.