Paramount Global Replaces CEO Amid Merger Talks With Skydance Media

(CTN News) – Paramount Global (PARA.O) has undergone a significant leadership change, replacing CEO Bob Bakish with a trio of executives amidst ongoing discussions with David Ellison’s Skydance Media regarding a potential merger.

The decision, announced on Monday, coincided with the unveiling of better-than-expected earnings for the quarter ending in March.

The media conglomerate, owner of Paramount+, Paramount Pictures, and various cable networks including MTV, BET, and Showtime, disclosed the management reshuffle just before the release of its quarterly financial results.

Following the announcement, Paramount’s shares experienced a nearly 1% surge, reaching $12.36 in after-hours trading.

The newly formed Office of the CEO will be jointly helmed by George Cheeks, current President and CEO of CBS, Brian Robbins, the head of Paramount Pictures studio, and Chris McCarthy, who oversees Showtime, MTV, and other networks within the Paramount portfolio.

Paramount Global’s move to shake up its executive leadership comes amid exclusive negotiations with Skydance Media and a strategic focus on bolstering its streaming business.

The company is grappling with intense competition from industry giants like Netflix (NFLX.O) and Walt Disney (DIS.N) as traditional cable TV viewership continues to decline.

“We’re finalizing a long-term strategic plan to best position this storied company to reach new and greater heights in a rapidly changing world,” stated Chris McCarthy during the company’s quarterly earnings call.

Paramount Global’s recent executive restructuring

However, analysts have expressed skepticism about the timing and approach of the executive restructuring. Paolo Pescatore, an analyst at PP Foresight, described the move as “ill-timed,” highlighting concerns about potential discord among key stakeholders.

“Why replace the CEO with three executives at a time when leadership is paramount (no pun intended) to the future success of the company?” questioned Pescatore in a written analysis.

Bob Bakish had steered the company since the 2019 merger with CBS, which led to the formation of ViacomCBS, later rebranded as Paramount Global. Prior to his tenure at ViacomCBS, Bakish assumed leadership at Viacom in 2016.

In defense of the new leadership arrangement, Chris McCarthy emphasized the collaborative history and longstanding relationships among the three appointed executives, citing their decades-long acquaintance.

As Paramount Global navigates through a rapidly evolving media landscape and negotiations with Skydance Media, the effectiveness of its revamped leadership structure will undoubtedly be closely scrutinized by industry observers and investors alike.

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