Paramount Global, the media conglomerate behind iconic film studio Paramount Pictures, is about to undergo a major shakeup at the top. CEO Bob Bakish is rumored to be on the way out, as the company considers a merger agreement with Skydance Media. The decision to remove Bakish comes amidst criticism from large shareholders who believe the merger would be detrimental to common shareholders.
The potential removal of Bakish as CEO raises questions about Paramount’s future as a standalone company. It also suggests that the company is willing to make bold moves to push through the merger agreement with Skydance. This move comes as a surprise to many, as Bakish has been vocal in his opposition to the deal, claiming that it only benefits controlling shareholder Shari Redstone.
Redstone, who is the president of National Amusements and holds a controlling stake in Paramount Global, has now indicated that she is open to a “majority of the minority” vote on the Skydance deal. This means that minority shareholders will have a say in whether the merger proceeds, potentially giving those who oppose the deal more influence over the outcome. This development has caused Paramount Global shares to jump about 5% in premarket trading.
By removing Bakish as CEO, Redstone and the Paramount Global board have thrown the company into chaos. Without a clear leader or go-forward strategy, the company’s future is uncertain. It appears that Redstone may be attempting to pressure common shareholders into accepting the merger by destabilizing the company without one.
Exclusivity talks with Skydance are set to end soon, and the company is reportedly working on sweetening its offer to make it more appealing to common shareholders. However, it remains to be seen whether these changes will be enough to convince investors to change their minds.
In the event that common shareholders reject the Skydance deal and there is no viable non-sale option, private equity firm Apollo Global and Sony may step in as a white knight. The two parties have had preliminary talks on a potential joint bid. However, regulators may view an acquisition by foreign entities as a risk, and it is unclear how this would impact the deal.
Meanwhile, Paramount has an important carriage renewal deal with U.S. cable company Charter Communications on the horizon. Bakish has been heavily involved in these negotiations, and it is uncertain how his potential removal will affect the outcome.
Overall, the future of Paramount Global hangs in the balance as the company considers a merger with Skydance Media. The potential removal of CEO Bob Bakish adds an unexpected twist to the situation, and it remains to be seen how common shareholders will respond to these developments. The outcome of the exclusivity talks and the carriage renewal deal with Charter Communications will play a crucial role in determining the company’s value moving forward.