Los Angeles, California – Paramount Global’s board is gearing up to remove Chief Executive Officer Bob Bakish from his position as early as Monday morning, sources familiar with the situation revealed. The decision comes ahead of the company’s quarterly earnings report on Monday, which Bakish will reportedly not be a part of.
Amid negotiations for a potential merger with Skydance Media, the board is expected to rely on division heads to lead the company in the absence of a CEO. A special committee has been established by Paramount Global to explore the merger, with the companies currently engaged in exclusive talks until May 3, with a possible extension on the horizon.
Sources suggest that Bakish has lost the trust of Paramount Global’s controlling shareholder, Shari Redstone, prompting the push for his ouster before critical negotiations with Charter Communications. These negotiations are crucial in determining the company’s value in the merger discussions with Skydance.
While Paramount and Skydance are reportedly making progress towards finalizing the merger deal, it is anticipated that Bakish will depart Paramount. There are indications that Skydance’s CEO, David Ellison, will assume leadership at Paramount once the deal is finalized, according to sources familiar with the matter.
Internally, Bakish has expressed concerns regarding the merger, fearing potential dilution of common shareholders’ ownership. The proposed terms of the deal would result in nearly 50% ownership of the merged entity by Skydance and its private equity partners, with the remaining portion owned by common shareholders, allowing the company to remain publicly traded.