Yahoo Finance Paramount Announces CEO Bob Bakish’s Exit as Merger Looms
Bob Bakish is stepping down as chief executive of Paramount Global, the company said Monday. The 60-year-old, who has spent nearly half his life at Paramount, is exiting amid ongoing talks regarding a merger deal with Skydance Media.
There are no immediate plans to replace Bakish. Instead, Paramount said that it would install an “Office of the CEO” made up of three division heads: Brian Robbins, Paramount Pictures CEO; George Cheeks, CBS CEO; and Chris McCarthy, who heads the conglomerate’s entertainment brands, including Showtime and MTV.
Shari Redstone, the chair of Paramount’s board, said in a statement that she had “tremendous confidence” in Robbins, Cheeks, and McCarthy. “They have both the ability to develop and execute on a new strategic plan and to work together as true partners,” she said.
Though his last day is Tuesday, Bakish has agreed to remain on through Oct. 31 as a “senior adviser,” Paramount said. Rumors of his impending ousting were first reported on Friday.
He first joined Viacom in 1997, ascending the corporate ladder until he became CEO there in 2016. After the ViacomCBS merger in 2019, Bakish was named CEO of the newly combined entity, which was renamed Paramount Global in early 2022. An early champion of streaming, he headed up the effort to create Paramount+ and acquire Pluto TV, and
The company’s stock went up 2.9 percent to close at $12.25 on Monday. In a quarterly earnings call with analysts that took place just after Monday’s close, Paramount said that revenue had risen 6 percent to $7.69 billion. The company has also closed the gap on its operating loss, down to $554 million from $1.12 billion in last year’s first quarter, and added 3.7 million subscribers to Paramount+, for a total of 71 million.
Bakish’s departure was announced just before the call, which lasted around 9 minutes. It consisted of the trio of executives delivering prepared remarks, led by CFO Naveen Chopra, according to The Hollywood Reporter. No questions were taken, and the call ended with the Mission: Impossible theme playing, according to multiple reports.
Bakish, who was not on the call, is entitled to a severance package of $50.6 million, with $31 million of that in cash for the two years after his employment is terminated, according to The New York Times, which cited the data firm Equilar.
That Bakish is leaving as Paramount and Skydance inch towards a possible merger is no coincidence. He has privately expressed reservations about a merger, and has lost Redstone’s trust, insiders familiar with her thinking told CNBC over the weekend.
“The Board and I thank Bob for his many contributions over his long career,” Redstone said in a statement on Monday, “including in the formation of the combined company as well as his successful efforts to rebuild the great culture Paramount has long been known for. We wish him all the best.”
Paramount and Skydance are in exclusive talks to pursue a deal until at least May 3. The agreement on the table involves $3 billion cash infusion from Skydance to buy back shares and pay debts, while also giving shareholders a larger stake than it offered previously, the Times reported.
Should a final deal be struck, Skydance is looking to install current CEO David Ellison at the head of the new company, according to CNBC.
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