Bob Bakish has been named CEO of Paramount Global

Bob Bakish is no longer serving as Paramount Global’s CEO, the company officially announced on Monday. Following nearly three decades at both Paramount Global and its predecessor Viacom, the executive’s departure coincides with efforts by the media conglomerate’s board and controlling shareholder Shari Redstone to finalize a merger agreement with Skydance Media.

The newly established “Office of the CEO” will be staffed by three of the company’s divisional heads: Brian Robbins, president and CEO of Paramount Pictures and Nickelodeon; Chris McCarthy, president and CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks; and George Cheeks, president and CEO of CBS.

Over the weekend, rumors circulated that Bakish was expected to leave the company soon. The CEO position and the board of directors are being relinquished by Bakish, according to Paramount Global. Bakish has consented to continue working as a senior adviser for the company from May 1 through October 1. 31, 2024, “to help ensure a seamless transition of his duties,” the business stated in a filing with the SEC.

It was stated by the company that Cheeks, McCarthy, and Robbins will collaborate closely with the board of directors and CFO Naveen Chopra “to develop a comprehensive, long-range plan to accelerate growth and develop popular content, materially streamline operations, strengthen the balance sheet, and continue to optimize the streaming strategy.”.

“We firmly believe in the future value creation potential of Paramount Global,” stated Redstone, the nonexecutive chair of the company, in a statement. “Paramount Global includes exceptional assets.”. Regarding George, Chris, and Brian, I have complete faith. They can collaborate as real partners and create and carry out a fresh strategic plan. The possibilities that lie ahead and the impact of their combined leadership on Paramount Global excite me greatly. “.

The executive alterations were disclosed by Paramount Global along with its first-quarter 2024 financial results. Of course, Bakish missed the brief (less than ten minutes) Q1 earnings call. Chopra gave a read-through of the financial results after Cheeks, McCarthy, and Robbins had made their brief prepared opening remarks. Analysis from Wall Street analysts was not answered by the company.

The recent development in Paramount’s lengthy MandA narrative is the change in management. Furthermore, Bakish’s dismissal might have been planned to hasten the completion of a deal.

The board of Paramount Global and Redstone, whose National Amusements Inc. regulates 77 percent of the voting shares of Paramount Global) have been working to complete the conditions of a merger with Skydance Media, owned by David Ellison; the parties have an exclusive bargaining window that ends on May 3 but could be extended. According to Bloomberg on Sunday, Redstone has agreed to grant nonvoting shareholders of Paramount Global approval over any Skydance deal, in response to investor concerns that she has been pursuing the deal out of her own self-interest in securing a payout for NAI. Skydance would then purchase Paramount shares at a premium. Furthermore, according to a New York Times story, Skydance is offering $3 billion in cash to Paramount Global; Paramount may utilize all or part of that amount to settle its $14.06 billion debt.

Sony Pictures Entertainment and private equity firm Apollo Global Management have discussed collaborating on a bid to take Paramount private, and it’s possible that they are working on a rival offer.

As Redstone’s preferred dance partner, Skydance, has been up for merger, it is rumored that Bakish was against the move. Notwithstanding the outcome of the M&A scenarios, it is evident that Bakish will not be retained.

The distribution agreement between Paramount and cable operator Charter Communications is set to expire on April 30. The terms of any renewal would have a significant effect on Paramount Global’s financial performance moving forward. This is just one of the many unanswered questions surrounding Paramount. It’s possible that Charter’s Spectrum TV will lose Paramount’s lineup of networks, which includes CBS, MTV, Comedy Central, and Nickelodeon. In 2023, bitter negotiations between Charter and Disney resulted in a 12-day blackout before an agreement was reached.

Based on the company’s April 11 preliminary proxy filing, Bakish’s compensation package was worth $31.26 million in 2023, which is a 2 percent decrease from the previous year. In addition to a $3 million base salary, he received $15 point5 million in stock awards and a $12 point4 million cash bonus last year.

Since Paramount Global was created in 2019 through the merger of Viacom and CBS, with Shari Redstone winning the battle to unite the two businesses, Bakish, 60, has served as president and CEO. Prior to this, he served as Viacom’s CEO until December 2016.

Over the course of the following 20 years, Bakish held a number of senior corporate, sales, and development positions after joining Viacom in 1997. Prior to taking on the role of CEO, he oversaw the company’s global operations as president and CEO of Viacom International Media Networks (VIMN) beginning in 2007. He was a partner in Booz Allen & Hamilton’s media and entertainment practice before joining Viacom.

Bakish has an employment agreement with Paramount Global, and according to the company’s most recent proxy statement, he can receive benefits and severance payments in the event that his employment “is terminated by us without ’cause’ or by him with ‘good reason,’ or, in certain circumstances, following non-extension of his employment agreement.”. Bakish will receive an annual cash bonus at his target bonus amount as well as his salary until the second anniversary of his termination. His severance payments are subject to an overall cap of two times the sum of his base salary and target bonus amount. In addition, Bakish will receive his salary until the second anniversary of his termination. Additionally, Bakish is qualified for all outstanding stock awards to vest fully.