Paramount Global (PARA) is reportedly gearing up to fire its current CEO, Bob Bakish, as soon as Monday, 29 April 2024.
No Curtain Call For Paramount’s CEO As Skydance Merger Looms
According to CNBC, those close to the matter indicated that Bakish would not be attending the company’s quarterly earnings call scheduled for Monday. Instead, the international media and entertainment giant will rely on its segment heads to handle the event.
The firm is currently in talks with Skydance Media, a private outfit, about a possible merger. CNBC reported that these negotiations will go on until 3 May 2024 and may extend past that date if needed.
Bakish allegedly lost the trust of Paramount’s controlling shareholder, Shari Redstone. These sources say that Redstone wanted to axe Bakish before the company’s talks with Charter Communications, Inc. (CHTR), which, according to reports, plays a crucial role in the Skydance merger negotiations.
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Current discussions have dealt with the departure of Bakish, and it is expected that Skydance will identify its CEO, David Ellison, as the new leader of Paramount. Rumours are that Bakish disagreed with this merger, believing that it would diffuse common stock.
Should this deal be realised, Skydance and its private equity partners would own nearly 50% of Paramount. CNBC indicated that common shareholders would retain the remainder of the company and continue to trade publicly.
When the final bell sounded on Friday, 26 April 2024, Paramount’s shares were 2.22% in the red and the company had a market cap of just over $8bn. The company’s year-over-year Q4 2023 revenue increased by 69%.
