Paramount Global made a significant change by parting ways with CEO Bob Bakish, who had been leading the company since Viacom and CBS Corporation were reunited in 2019. The decision to replace Bakish with a triumvirate of leaders, including Brian Robbins, Chris McCarthy, and George Cheeks, comes as the company engages in acquisition talks with Skydance Media. The move marks the end of the Redstone family’s control over Paramount, which has been responsible for popular franchises such as “Top Gun,” “Star Trek,” and “Transformers.”
The departure of Bakish follows a period of strained relations between him and Shari Redstone, with board members criticizing strategic decisions such as not offloading Showtime and selling BET. Paramount has faced challenges in maintaining profits as the industry rapidly transitions to streaming, with shares of its stock dropping nearly 50% over the past year. With a heavy reliance on cable television, the company has struggled to adapt to changing consumer habits and compete with streaming services like Netflix.
Paramount has attempted to mitigate declining cable revenues by investing in its own streaming service, Paramount+, but has faced challenges in attracting subscribers due to a limited content library. The company reported a paid subscriber base of 71.2 million on Monday, highlighting the ongoing struggle to gain traction in the crowded streaming space. The Skydance deal, which includes a $3 billion cash infusion, aims to change Paramount’s fortunes by investing in the company and paying down debt.
Skydance’s “best and final” offer to Paramount values the company at around $5 billion and has been met with shareholder concerns about potential benefits for Redstone. The deal would involve Skydance purchasing Paramount shares at a premium price, with supporters hoping that the merger will lead to a brighter future for the company. A committee of Paramount executives will oversee the company until the deal is completed, with potential new leadership including Jeff Shell, the former NBCUniversal chief executive.
Overall, Paramount’s decision to replace Bob Bakish with a leadership triumvirate comes at a pivotal time for the company as it navigates acquisition talks and seeks to adapt to the changing media landscape. The move reflects broader industry challenges facing legacy media companies in the era of streaming, with hopes that the Skydance deal will help propel Paramount towards a more successful future. As the company continues to evolve its streaming offerings and address shareholder concerns, the outcome of the Skydance deal could have a significant impact on Paramount’s trajectory in the ever-evolving media landscape.
