Los Angeles, CA – Paramount, the Hollywood-based entertainment company, is facing internal turmoil as it enters discussions with Skydance Media for a potential merger. The uncertainty surrounding the company has heightened with reports that CEO Bob Bakish may soon be ousted from his position. Bakish, a longtime executive at Paramount and its predecessor Viacom, has found himself at odds with the company’s controlling stakeholder, Shari Redstone, over the proposed Skydance deal.
The situation at Paramount has attracted the attention of other major players in the industry, with Sony and Apollo expected to make a counterbid in the coming days. The clash between Bakish and Redstone, along with the dissent from common shareholders regarding the Skydance offer, has plunged Paramount into a state of disarray.
Skydance CEO David Ellison, backed by prominent figures like Larry Ellison and private equity groups RedBird and KKR, is pursuing a complex deal involving the acquisition of National Amusements and subsequently Paramount itself. However, some Paramount shareholders have raised objections to the proposed structure of the deal, threatening legal action if it proceeds.
Amidst the ongoing drama, analysts have raised concerns about the potential regulatory hurdles that a Sony and Apollo acquisition of Paramount could face. The company’s struggling streaming service, coupled with its declining stock valuation, has exacerbated the challenges Paramount is currently grappling with.
As negotiations with Skydance are set to conclude, the future of Paramount remains uncertain. The decision to remove Bakish from his role would mark a significant shift in leadership at the company. With Paramount set to report its earnings soon, all eyes are on the entertainment giant as it navigates through this tumultuous period.