Paramount Global will reportedly fire its CEO and announce a major merger with Skydance Media.
Paramount Global is set to announce a major shake-up at the top level ahead of its quarterly earnings call on Tuesday. The news broke on Friday as rumors started spreading on sector outlets, though a major change in the entertainment giant’s leadership has been in the works for months.
The board will likely fire CEO Bob Bakish, several sources told Variety and Deadline during the weekend. Bakish’s relationship with chairwoman Shari Redstone reportedly deteriorated after years of unprofitable strategic decisions.
Shari Redstone is the president of National Amusements Inc., the majority holder of Paramount Global. The Redstone family controlled the company for several generations.
An internal chief executive of one of Paramount’s divisions will likely replace Bakish. The choice will probably fall on Brian Robbins, CEO of Paramount Pictures; George Cheeks, CEO of CBS; or Chris McCarthy, President of MTV Entertainment Group.
Bakish became Paramount Global’s top leader in 2019, driving the company toward a critical time for the entertainment industry. Like most Hollywood majors, Paramount tried gaining a spot in the streaming sector with its Paramount+ platform.
Also like other majors, however, Paramount’s streaming service never became profitable, losing the company billions of dollars.
Selecting an offer
On Tuesday’s earnings call, Shari Redstone will also likely announce a major business deal, shaping the future of the company.
David Ellison, CEO of Skydance Media, offered to become the majority owner of Paramount Global, relieving the company from its crippling financial issues. Redstone would maintain a significant share of Paramount Global, though it would not own the relative majority anymore.
Redstone and Ellison have negotiated this deal for months. Sources close to the matter say Redstone likes the deal, as it would not change Paramount’s core business identity. Bob Bakish was reportedly against the deal.
Paramount Global also received an acquisition offer from Sony Entertainment and Apollo. Such a deal would change Paramount from its foundations, and it’s unclear whether the Redstone family could maintain a hold of the company.
David Ellison is the son of Larry Ellison, founder and CEO of Oracle and the world’s fourth-richest person. Oracle is at the forefront of innovation in artificial intelligence, offering several AI-based services.
CNBC reported that the Ellisons would likely try and project Paramount into the future, integrating Oracle’s technological innovation into the media space.
Paramount would not be the only legacy media company eyed by tech giants. Apple and Amazon have become major players in the entertainment industry through their popular streaming services. Warner Bros. Discovery is also reportedly looking for buyers, with some in the tech sector too.
