Paramount, the iconic Hollywood company behind blockbuster films like “The Godfather” and “Titanic,” is facing a major shakeup as it prepares to fire chief executive Bob Bakish. The decision comes amidst merger discussions with Skydance Media and a potential counterbid from Sony and Apollo, according to sources familiar with the matter.
Bakish, who has been with Paramount and its predecessor Viacom for over two decades, was installed as CEO by Shari Redstone in 2016. However, tensions have risen between Bakish and Redstone over the Skydance offer, with common shareholders expressing concerns about the deal’s structure.
The company’s stock valuation has plummeted over the past year, reflecting investor uncertainty about Paramount’s future in the face of stiff competition from streaming giants like Netflix. Paramount’s struggles have been exacerbated by losses in its streaming service and the decline of its television channels.
Skydance CEO David Ellison, backed by his billionaire father Larry Ellison and private equity groups RedBird and KKR, is pursuing a complex deal that would see his company acquire National Amusements, Paramount’s majority shareholder, for $2 billion. Paramount would then acquire Skydance for $5 billion in a stock deal.
As the drama unfolds at Paramount, shareholders have voiced opposition to the proposed structure of the Skydance deal, with some threatening legal action if it goes through. The company’s future remains uncertain as it navigates these challenging negotiations and attempts to regain investor confidence.
Stay tuned for updates as the situation continues to evolve at Paramount, a company once synonymous with Hollywood glamour now facing a turbulent period of change and uncertainty.