Paramount Global CEO Bob Bakish was ousted Monday after a bitter falling out with the media and entertainment company’s controlling shareholder, Shari Redstone.
The company, which owns CBS, Nickelodeon, MTV and the Hollywood studio Paramount Pictures, said a consortium of three high-ranking Paramount entertainment executives would run the company: Paramount Pictures Chief Executive Brian Robbins; CBS Chief Executive George Cheeks; and Showtime/MTV Entertainment Studios Chief Chris McCarthy.
Bakish’s firing comes during a tumultuous period for the company — and on the same day that it reports its quarterly earnings.
Paramount is in the midst of a 30-day exclusive negotiating period with tech scion David Ellison, whose Skydance Media has teamed up with investment firms RedBird Capital and KKR to acquire Paramount controlling shareholder Shari Redstone’s National Amusements holding company. On Sunday, Skydance sweetened its offer by $1 billion, with money earmarked for Paramount’s B-class, or non-voting, shareholders, according to three people familiar with the deal but not authorized to comment. National Amusements holds 77% of Paramount’s voting shares.
The exclusive negotiating period ends on Friday. It is not clear whether Skydance and RedBird have given Paramount’s board a deadline to accept its revised offer.
Bakish was opposed to the Skydance transaction, a stance that infuriated Redstone who hand-picked Bakish to run the company, then known as Viacom, in 2016. In the last 10 days, senior company executives also raised questions about Bakish’s leadership in conversations with board members — a move that expedited Bakish’s departure from the company, the sources said.
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He was more open to another proposed deal, favored by smaller shareholders, with private equity firm Apollo Global Management, which has offered $26 billion, including the assumption of Paramount’s debt. Sony Pictures Entertainment has been negotiating with Apollo to join that effort. Most insiders anticipate that Apollo and Sony would break the company apart, a scenario that Redstone does not want to allow.
Redstone, according to one person familiar with the matter, has also been frustrated with some of Bakish’s decisions, including not selling Showtime, the premium cable network that the company folded into its television networks and streaming effort. Bakish had dismissed a recent offer of $3 billion for the channel from investors, including former Showtime head David Nevins.
Paramount, meanwhile, has lost massive amounts of money on its streaming service, Paramount+.
“Paramount Global includes exceptional assets and we believe strongly in the future value creation potential of the Company,” Redstone said in a statement. “I have tremendous confidence in George, Chris and Brian. They have both the ability to develop and execute on a new strategic plan and to work together as true partners. I am extremely excited for what their combined leadership means for Paramount Global and for the opportunities that lie ahead.”
Redstone’s statement continued: “The Board and I thank Bob for his many contributions over his long career, 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.”
In addition, the company faces a critical Wednesday deadline to strike a new deal with cable distribution giant Charter Communications, which runs the Spectrum TV service.
Paramount entered the Charter negotiations with a weak hand — its cable television channels have suffered from falling ratings amid consumers’ shift to streaming. Paramount relies heavily on the revenue it receives from Charter, Comcast, DirecTV and other distributors.
The media empire now known as Paramount Global was formed in 2019 from the merger of Viacom Inc. and CBS Corp. But the combination never convinced Wall Street of its promise. In the last year alone, Paramount Global’s stock has lost nearly half its value.
Bakish was named CEO of Viacom in 2016, after the company’s stock had fallen 45% in two years due to falling ratings at some of its key networks, including Comedy Central and MTV, as well as struggles at its Paramount Pictures film studio.
After Redstone orchestrated the merger of Viacom with CBS, Bakish became CEO of the combined enterprise.
