Paramount Global CEO Bob Bakish is expected to resign on Monday amid controversial merger talks with Skydance Media and ahead of the company’s quarterly results later that afternoon. ing.
Mr. Bakish has clashed with Paramount’s controlling shareholder, Shari Redstone, who said the CEO was “not fully aware of the company’s strategic opportunities,” including the possible sale of the Showtime channel. The Wall Street Journal reported Friday.
At the same time, Bakish has privately opposed the Skydance acquisition, saying it would dilute value for public shareholders, CNBC reported, citing anonymous sources familiar with the matter.
He reportedly joined a chorus of large common shareholders, including Mario Gabelli’s Gamco Investors, Ariel Investments, Matrix and Aspen Sky Trust, in condemning the deal as destroying value for common shareholders. ing.
Amid heightened tensions, Paramount announced ahead of Monday’s post-market earnings report that Bakish would be replaced by a “chief executive officer office” made up of the company’s divisional heads. It is expected that
Mr. Bakish is not expected to attend the financial results conference. Deadline reported.
To appease shareholders, reported by bloomberg On Sunday, it was announced that Redstone and independent film producer David Ellison had offered concessions to make the deal more attractive to the company’s other investors.
Boomberg reported that Ellison is proposing to buy Paramount stock at a premium to its current price in order to strengthen the company’s finances.
Redstone, which owns a majority of the company’s voting shares, agreed to give non-voting shareholders a say in whether the deal should be approved.
Both sides are trying to close the deal in the face of a major shareholder revolt.
But for Paramount, home of CBS, MTV, BET and Hollywood studio Paramount Pictures, Bakish’s firing adds further turmoil at a critical time, as the period of exclusive negotiations with Skydance expires on May 3. I’ll probably invite you.
Mr. Gabelli, the company’s second-largest voting shareholder behind Redstone through its super-voting stock and Paramount common stock, recently told the Post that he would prefer Mr. Bakish to continue with his turnaround strategy rather than sell. he said.
This included a deal with Skydance and a sale to private equity firm Apollo Global Management, which offered $26 billion and is currently partnering with Sony as part of its acquisition of Paramount. Are considering.
Mr. Bakish’s firing would mark a somewhat surprising turn of events for the executive, who was seen as Mr. Redstone’s right-hand man.
He was named Viacom’s CEO in 2016 and elevated to the top job after Redstone merged the company with CBS in 2019.
As Redstone and the Paramount board inch closer to a deal with Skydance, which has produced such Paramount blockbusters as Mission: Impossible and Top Gun, Bakish is looking for alternatives. was.
The newspaper reported Friday that even as Redstone moves forward with Skydance negotiations, Bakish is quietly negotiating other deals.
One such deal included a potential streaming partnership with Comcast, NBCUniversal’s parent company, the newspaper said, without disclosing information to Redstone or its board of directors.
Bakish and Comcast We were discussing the possibility of a joint venture. Paramount+’s relationship with Comcast’s streamer Peacock was reported in February by The Journal.
Redstone, meanwhile, was fed up with the CEO and blamed him for what she saw as the company’s overall woes and missed opportunities to strike a healthy deal, the newspaper reported. Ta.
People close to Redstone said the mogul was open to selling the premium channel Showtime, home to Billions, Dexter and Yellowjackets, but Bakish declined the bid. That’s what it means. It even rejected a $3 billion offer from former Showtime CEO David Nevins last year. Instead, Bakish folded Showtime and its content into Paramount+.
Bakish’s supporters say the executive made a name for himself at the company, including streaming with the launch of Paramount+, the acquisition of ad-supported TV streaming service Pluto TV and maintaining CBS’ strong position in the industry. Arguing and disputing.
Ellison, the son of billionaire Oracle founder Larry Ellison, put on the table Sunday his “best and last offer” to buy a portion of Paramount stock.
If the acquisition goes through privately held Skydance, it would be valued at $5 billion and merge with Paramount.
Ellison, along with private equity firms KKR and Redbird, plans to raise about $4.5 billion to $5 billion in new equity, according to reports.
Approximately $2 billion of that amount will be used to acquire Redstone, with a significant portion of the remainder to be used to pay down debt.
According to CNBC, if the deal goes through, Ellison will be named CEO of Paramount Global, and former NBCUniversal CEO Jeff Shell will become president. If that happens, there is no future for Mr. Bakish’s company.
