Paramount CEO Bakish May Be Ousted Amid Skydance Merger

Paramount Global CEO Bob Bakish may face ousting from his position as soon as next week, according to multiple reports. The potential move comes amidst tensions within the global entertainment firm, which is exploring a merger with Skydance Media.

Bakish’s possible removal is reportedly linked to a strained relationship with the company’s controlling shareholder, Shari Redstone. The New York Times cited three unnamed sources familiar with the matter. Bakish has allegedly opposed the potential merger with Skydance Media, founded by David Ellison, son of billionaire Larry Ellison. Redstone’s desire to oust Bakish is said to be related to upcoming renewal negotiations with Charter Communications for CBS and other Paramount networks. These negotiations are seen as crucial for solidifying Paramount’s value for the potential merger, CNBC reported, citing unnamed sources.

The Wall Street Journal first reported Paramount’s consideration of ousting Bakish and the potential establishment of a committee to run the company on an interim basis. However, no official decision has been made.

Paramount is set to report its first-quarter earnings on Monday, with Bakish not expected to be on the call, CNBC reported.

Paramount Global was formed in a $12 billion 2019 merger between CBS and Viacom. Bakish has been Viacom’s CEO since 2016 and retained the role after the merger. Reports of potential acquisition talks have been circulating for months, coinciding with reports of the company’s financial underperformance, which has impacted its stock price. Paramount shares closed the week at $11.91, down more than 50% from its 52-week high of $24 on May 1, 2023. Redstone reportedly agreed to sell her controlling stake to Skydance Media on April 3. A week later, The Wall Street Journal reported that four board members were expected to leave Paramount Global. Additionally, Sony and investment firm Apollo Management were reportedly in discussions for a joint buyout of the conglomerate.

In 2023, Bakish earned $31.3 million in compensation, a 2% decrease from the previous year, according to new data on CEO compensation at major entertainment firms.