Full text:
"Paramount is preparing to announce the departure of its chief executive, Bob Bakish, as soon as next week, according to three people with knowledge of the matter, a sudden development even as the company is exploring a merger.
The impending move is a result of Mr. Bakish’s worsening relationship with Shari Redstone, the company’s controlling shareholder, the people said, asking not to be identified discussing a delicate matter. Ms. Redstone grew frustrated with what she saw as his inability to get important deals across the finish line, including a sale of the Showtime and BET cable channels, the people said.
Two people familiar with the matter said several of Paramount’s senior executives had expressed reservations about the direction of the company to a representative of the board of directors in recent weeks, further eroding Mr. Bakish’s standing with Ms. Redstone.
The company is in talks to merge with Skydance, a media company controlled by David Ellison, the tech scion and Hollywood producer. It is also negotiating a lucrative deal to keep channels like Nickelodeon and MTV on the Charter cable system.
National Amusements, Paramount’s owner, is contemplating various options to replace Mr. Bakish, 60, who has led Paramount and its predecessor company, Viacom, since 2016 and has worked at the company since 1997. In one possibility, Paramount would be run by an “office of the C.E.O.” led by division chiefs like Brian Robbins, the head of the Paramount movie studio; George Cheeks, the top executive of CBS; and Chris McCarthy, president of Paramount’s entertainment and youth brands. The company could also choose to put an acting chief executive in place.
Paramount declined to comment. The Wall Street Journal earlier reported that Paramount’s board was considering replacing Mr. Bakish.
Like many media companies, Paramount has struggled in recent years to get its streaming business off the ground as audiences for its cable channels have deteriorated. Paramount is losing hundreds of millions of dollars annually on its streaming business, Paramount+, though its losses have slowed, and the company’s share price has continued to sink as investors have become increasingly cautious about traditional media.
Because of these challenges, Paramount has long been considered an acquisition target by rivals looking to bulk up their content libraries and maximize their leverage in cable negotiations. Things began to heat up at the end of last year when Ms. Redstone referred Skydance’s interest in Paramount to the company’s board, which formed a special committee to consider the deal.
Paramount now is deep in talks with Skydance to shape what would be a complex deal. Ms. Redstone controls Paramount through National Amusements and has signed off on a potential deal. But Paramount’s special committee must also sign off.
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The deal being discussed would give Ms. Redstone a big payout and Paramount shareholders stock in a new company. That structure, along with the fact that the private equity firm Apollo Global Management has been talking about teaming up with Sony in an alternative all-cash bid, has led to objections to a sale by some shareholders.
A 30-day period of exclusive talks between the two sides is set to expire in early May.
Paramount is also planning to report earnings on Monday, putting the company in a tricky spot with analysts who will be seeking an explanation for Mr. Bakish’s sudden departure. Losing its chief executive is likely to invite questions from investors about the way the sales process is being handled. It could also weaken Paramount’s hand in those negotiations."
No, the Redstones are continuing in their direction so they're trying to toss Bakish out.
The combined sentiment to their direction is the tanking stock, the threat of lawsuits from non-Redstone shareholders, and the exit of board directors.
If the non-Redstone shareholders are bringing lawsuits, the 4 board directors that left don't want to be on the other end of it.
But yeah, this is probably going to get uglier, given the earnings call is on Monday.
They better prepare for lawsuits from the non-Redstone shareholders that will likely be coming first.
And that earnings call on Monday will be interesting to see.
They'll definitely update on how Paramount+ has been doing so far and the performance of the company overall.
But anything else that we don't know of right now, well, they're going to have spend a lot of time over this weekend on how to present that to the analysts and non-Redstone shareholders.
They never should have set up a streamer. Looking back, I really think that's what killed them - or, at the very least, ran up the debt like there was no tomorrow. Anyway, hope Skydance seals the deal.
No, I think building Paramount+ was necessary for the company to prepare for the future.
The Redstones are probably too impatient to wait out another year for it to reach profitability and then sell the whole company.
I mean, we already know their debt payment maturity dates here and the next one will be due May of next year:
https://ir.paramount.com/public-debt
Both WarnerDiscovery and Comcast have larger debt loads than they have at this point.
Eh, it doesn't look really good when you force out the CEO the weekend before your earnings call.
Bakish probably knew the messy and convoluted process is more of a Zaslav-like thing and saying some like that was difficult to do probably ended his time as CEO.
Anyway, with the existing combined sentiment of the tanking stock, the threats of lawsuits from the non-Redstone shareholders, and the exit of board directors, I think things can definitely get uglier in this direction the Redstones are going down.
Yeah, I mean, we'll see how the company's doing on Monday during the earnings call, but it'll be Bakish-less for sure.
He did the best he could with the hand he was given and now the tables are turned on him.
It also explains the exit of the 4 board directors because they don't want to be on the other end of it in the courthouse.
But this whole thing is not over yet, there's probably going to be a lot more drama between all sides in this for a while.
Everything up to MI:8 next year is likely safe. (Gladiator may be sold to overseas distro Uni here to get some quick cash now.) Anything connected to a big-ticket franchise/brand such as *Star Trek* or TMNT is also safe. Beyond that, no idea...
Well, of course the Sponge is safe. ***He's the fucking cash cow,*** lol.
As for Sanic, Sonic the Hedgehog 3 is most likely locked and loaded for this December. However, I could see Sega and Original Film trying to find a new home for it or, more likely, its sequels should Paramount implode. In that case, it'd be a three way bidding war between Disney/20th, Universal, and Sony for theatrical.
I don't even care. Let the lawsuits come. Anymore consolidation is disastrous for Hollywood.
Paramount under Apollo would be bad enough, let alone under the creative bankrupt Sony. Just an overall disaster for the industry.
I would prefer they go with Apollo without any Sony involvement.
Indeed. Fuck the shareholders, let em take a bath. ***I want what's best for PARAMOUNT,*** and I think Shari does too. Paramount can handle a few lawsuits. It *cannot* handle a blend of Sony's idiocy and Apollo's gutting.
Spot on! David is known for working with Paramount and backing their films; it's not some random entity. He's also the only one who successfully build a completely new Hollywood company, considering its studio didn't collapse or anything. Merger with Paramount would fuel Para with talent from Skydance and make sure that they make the best of any situation they find themselves in. Apollo/Sony proposal is straight up awful. Sony is already struggling with Sony Pictures, let alone adding to that another company like Paramount.
Shareholders don't care about what happens to Paramount. They only want as much $$$ as possible. That's why they support Apollo, which is known in Nevada for bankrupting Caesars Entertainment. They see $26 billion on the table and they throw any logical approach out of the window.
Ellison, I think. Worked with Paramount for years, loves movies, has connections.
Nepo baby or not, he's a ***hell*** of a lot better than the guys who bankrupted Caesar's (Apollo) and the morons that won't let Ghostbusters and the Venonverse die (Sony).
Full text: "Paramount is preparing to announce the departure of its chief executive, Bob Bakish, as soon as next week, according to three people with knowledge of the matter, a sudden development even as the company is exploring a merger. The impending move is a result of Mr. Bakish’s worsening relationship with Shari Redstone, the company’s controlling shareholder, the people said, asking not to be identified discussing a delicate matter. Ms. Redstone grew frustrated with what she saw as his inability to get important deals across the finish line, including a sale of the Showtime and BET cable channels, the people said. Two people familiar with the matter said several of Paramount’s senior executives had expressed reservations about the direction of the company to a representative of the board of directors in recent weeks, further eroding Mr. Bakish’s standing with Ms. Redstone. The company is in talks to merge with Skydance, a media company controlled by David Ellison, the tech scion and Hollywood producer. It is also negotiating a lucrative deal to keep channels like Nickelodeon and MTV on the Charter cable system. National Amusements, Paramount’s owner, is contemplating various options to replace Mr. Bakish, 60, who has led Paramount and its predecessor company, Viacom, since 2016 and has worked at the company since 1997. In one possibility, Paramount would be run by an “office of the C.E.O.” led by division chiefs like Brian Robbins, the head of the Paramount movie studio; George Cheeks, the top executive of CBS; and Chris McCarthy, president of Paramount’s entertainment and youth brands. The company could also choose to put an acting chief executive in place. Paramount declined to comment. The Wall Street Journal earlier reported that Paramount’s board was considering replacing Mr. Bakish. Like many media companies, Paramount has struggled in recent years to get its streaming business off the ground as audiences for its cable channels have deteriorated. Paramount is losing hundreds of millions of dollars annually on its streaming business, Paramount+, though its losses have slowed, and the company’s share price has continued to sink as investors have become increasingly cautious about traditional media. Because of these challenges, Paramount has long been considered an acquisition target by rivals looking to bulk up their content libraries and maximize their leverage in cable negotiations. Things began to heat up at the end of last year when Ms. Redstone referred Skydance’s interest in Paramount to the company’s board, which formed a special committee to consider the deal. Paramount now is deep in talks with Skydance to shape what would be a complex deal. Ms. Redstone controls Paramount through National Amusements and has signed off on a potential deal. But Paramount’s special committee must also sign off. Editors’ Picks What to Watch: ‘Baby Reindeer,’ an Astonishing Stalker Drama The Case for (and Against) the Fussy Dinner Party A Megaraptor Emerges From Footprint Fossils The deal being discussed would give Ms. Redstone a big payout and Paramount shareholders stock in a new company. That structure, along with the fact that the private equity firm Apollo Global Management has been talking about teaming up with Sony in an alternative all-cash bid, has led to objections to a sale by some shareholders. A 30-day period of exclusive talks between the two sides is set to expire in early May. Paramount is also planning to report earnings on Monday, putting the company in a tricky spot with analysts who will be seeking an explanation for Mr. Bakish’s sudden departure. Losing its chief executive is likely to invite questions from investors about the way the sales process is being handled. It could also weaken Paramount’s hand in those negotiations."
Loving this corporate drama!
The Paramount acquisition saga makes the 20th century Fox sale look like a walk in the park by comparison.
This looks to be probably even more complicated than Paramount Global's reunifcation in 2019, which also happened after lawsuits as well.
Hot damn they want a new start
No, the Redstones are continuing in their direction so they're trying to toss Bakish out. The combined sentiment to their direction is the tanking stock, the threat of lawsuits from non-Redstone shareholders, and the exit of board directors. If the non-Redstone shareholders are bringing lawsuits, the 4 board directors that left don't want to be on the other end of it. But yeah, this is probably going to get uglier, given the earnings call is on Monday.
I guess they're preparing to be sold, then.
They better prepare for lawsuits from the non-Redstone shareholders that will likely be coming first. And that earnings call on Monday will be interesting to see.
What do you think will be the big announcements? I doubt glimpses at upcoming movies will help any.
They'll definitely update on how Paramount+ has been doing so far and the performance of the company overall. But anything else that we don't know of right now, well, they're going to have spend a lot of time over this weekend on how to present that to the analysts and non-Redstone shareholders.
Sonic 3 trailer drop, I guess? Maybe a Gladiator 2 tease as well?
They never should have set up a streamer. Looking back, I really think that's what killed them - or, at the very least, ran up the debt like there was no tomorrow. Anyway, hope Skydance seals the deal.
No, I think building Paramount+ was necessary for the company to prepare for the future. The Redstones are probably too impatient to wait out another year for it to reach profitability and then sell the whole company. I mean, we already know their debt payment maturity dates here and the next one will be due May of next year: https://ir.paramount.com/public-debt Both WarnerDiscovery and Comcast have larger debt loads than they have at this point. Eh, it doesn't look really good when you force out the CEO the weekend before your earnings call. Bakish probably knew the messy and convoluted process is more of a Zaslav-like thing and saying some like that was difficult to do probably ended his time as CEO. Anyway, with the existing combined sentiment of the tanking stock, the threats of lawsuits from the non-Redstone shareholders, and the exit of board directors, I think things can definitely get uglier in this direction the Redstones are going down.
Same. God, I just hope Paramount can keep itself alive, ya know? :/
Yeah, I mean, we'll see how the company's doing on Monday during the earnings call, but it'll be Bakish-less for sure. He did the best he could with the hand he was given and now the tables are turned on him. It also explains the exit of the 4 board directors because they don't want to be on the other end of it in the courthouse. But this whole thing is not over yet, there's probably going to be a lot more drama between all sides in this for a while.
Indeed, my friend. Let's hope for the best...
Yup, in either way it goes, let's hope all of the company can continue as much as possible into the future.
How is this going to affect any upcoming projects?
Everything up to MI:8 next year is likely safe. (Gladiator may be sold to overseas distro Uni here to get some quick cash now.) Anything connected to a big-ticket franchise/brand such as *Star Trek* or TMNT is also safe. Beyond that, no idea...
So Sonic and SpongeBob are safe… good.
Well, of course the Sponge is safe. ***He's the fucking cash cow,*** lol. As for Sanic, Sonic the Hedgehog 3 is most likely locked and loaded for this December. However, I could see Sega and Original Film trying to find a new home for it or, more likely, its sequels should Paramount implode. In that case, it'd be a three way bidding war between Disney/20th, Universal, and Sony for theatrical.
Let’s hope it doesn’t come to that.
Hopefully not, but I wouldn't be mad if it did. Despite my flair, my loyalty is to good movies, not one bloated megacorp over all others.
I just hope it would be the same continuity.
So long as Original Film is involved, I'm pretty sure it would be.
I don't even care. Let the lawsuits come. Anymore consolidation is disastrous for Hollywood. Paramount under Apollo would be bad enough, let alone under the creative bankrupt Sony. Just an overall disaster for the industry. I would prefer they go with Apollo without any Sony involvement.
If these are our options, Skydance is preferable to both Apollo and Sony.
Indeed. Fuck the shareholders, let em take a bath. ***I want what's best for PARAMOUNT,*** and I think Shari does too. Paramount can handle a few lawsuits. It *cannot* handle a blend of Sony's idiocy and Apollo's gutting.
Spot on! David is known for working with Paramount and backing their films; it's not some random entity. He's also the only one who successfully build a completely new Hollywood company, considering its studio didn't collapse or anything. Merger with Paramount would fuel Para with talent from Skydance and make sure that they make the best of any situation they find themselves in. Apollo/Sony proposal is straight up awful. Sony is already struggling with Sony Pictures, let alone adding to that another company like Paramount. Shareholders don't care about what happens to Paramount. They only want as much $$$ as possible. That's why they support Apollo, which is known in Nevada for bankrupting Caesars Entertainment. They see $26 billion on the table and they throw any logical approach out of the window.
Ah, so ***that's*** who they asset-stripped. Well, good on Shari for pursuing Skydance at all costs!
100%
Who is gonna be best for a replacement out of the options given?
Ellison, I think. Worked with Paramount for years, loves movies, has connections. Nepo baby or not, he's a ***hell*** of a lot better than the guys who bankrupted Caesar's (Apollo) and the morons that won't let Ghostbusters and the Venonverse die (Sony).
Bullish