Paramount Global (PARA) is facing a major shakeup as CEO Bob Bakish is expected to announce his departure, sparking speculation about the company’s future. Reports indicate that tensions between Bakish and controlling shareholder Shari Redstone have reached a breaking point, leading to the potential announcement of his exit as soon as Monday.
In response to Bakish’s impending departure, Paramount is reportedly considering installing an “Office of the CEO” made up of division heads to fill the void. This news has caused shares to rise by about 5%, reflecting investor interest and uncertainty surrounding the company’s leadership.
Meanwhile, National Amusements, the company controlled by Redstone, is in talks with David Ellison’s Skydance Media to sell its controlling stake in Paramount. However, concerns have been raised by nonvoting shareholders about the terms of the deal, which some believe favor Redstone unfairly.
In the midst of these developments, Sony Pictures Entertainment and Apollo Global Management are also reportedly exploring a joint bid to acquire Paramount. Analysts are closely watching the situation, with MoffettNathanson’s Robert Fishman noting the potential impact of Paramount’s distribution deal with Charter, which is set to expire soon.
Ultimately, the fate of Paramount’s future rests in the hands of Redstone, who appears determined to move forward with Ellison and his backers despite shareholder concerns. As the company navigates these changes, investors and industry observers will be closely monitoring the unfolding drama at Paramount Global.