US Markets
Monday, April 29th, 2024 2:49 pm EDT
Key Points
- Paramount Global plans to replace CEO Bob Bakish with existing division heads in a move aimed at accelerating the company’s future, amidst preparations for a merger agreement with Skydance Media.
- Bakish’s departure raises uncertainties about Paramount’s standalone future and potentially facilitates the merger agreement, which has faced criticism from large common shareholders who argue it diminishes value for them.
- Controlling shareholder Shari Redstone is considering a “majority of the minority” vote on the Skydance deal, giving minority shareholders a say, while a potential joint bid by Apollo Global and Sony emerges as an alternative, adding complexity to Paramount’s strategic direction.
Paramount Global is poised to undergo a significant leadership shake-up as Chief Executive Officer Bob Bakish is expected to be replaced by a cohort of existing division heads in a move aimed at reshaping the company’s future. This strategic maneuver comes ahead of the company’s earnings report, scheduled after the markets close, and as Paramount Global nears a merger agreement with Skydance Media. Bakish’s departure raises questions about Paramount’s standalone future, potentially paving the way for a merger agreement that some large common shareholders have criticized, citing concerns about value destruction and equity dilution. Notably, controlling shareholder Shari Redstone is reportedly open to a “majority of the minority” vote on the Skydance deal, giving minority shareholders a say in its outcome. This development signals a significant shift in the merger talks and underscores the influence of dissenting voices within Paramount. With talks with Skydance set to conclude soon, the possibility of a joint bid by private equity firm Apollo Global and Sony emerges as a potential alternative, although regulatory considerations and funding sources remain crucial factors. Amidst these developments, Paramount faces an imminent carriage renewal deal with U.S. cable company Charter Communications, the outcome of which could significantly impact the company’s valuation and future trajectory, underscoring the complexity of its current situation in the midst of strategic and leadership transitions.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/04/29/shari-redstone-paramount-ceo-bob-bakish-removal.html
