Topline
Paramount Global chief executive Bob Bakish is leaving his role as head of the entertainment company and CBS parent, it announced Monday, following reports last week that he may be ousted as tensions rise while Paramount considers a merger with Skydance Media that’s controversial among many shareholders.
Key Facts
Paramount announced Bakish’s departure in a press release thanking him for “his many contributions” including his “successful efforts to rebuild the great culture Paramount has long been known for.”
Bakish’s departure comes as Paramount seriously considers a complicated merger with Skydance—which Bakish reportedly opposed in private, leading to apparent tensions with Paramount Global’s controlling shareholder Shari Redstone.
Paramount said Bakish, who started with predecessor company Viacom in 1997 and worked there through CBS’ merger, is being replaced by an “office of CEO,” made up of three top executives.
Bakish will also leave Paramount’s board of directors, the release said.
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Big Number
$50.6 million. That’s how much Bakish is entitled to with his severance package, the New York Times reported, citing data firm Equilar. Of that sum, more than $30 million will come in cash for two years after his termination.
Key Background
Paramount has been considering a merger with Skydance—which was founded by billionaire Larry Ellison’s son, David—and reached a tentative agreement in early April in which Skydance would buy Redstone’s controlling stake in the company. The merger was controversial among Paramount’s board of directors, though, as four board members reportedly said they were leaving following news that Skydance and Paramount reached a tentative agreement. Bakish’s opposition to the merger reportedly led to Redstone’s desire to oust him before renewal negotiations with Paramount networks, which are important to solidifying Paramount’s value before the merger, CNBC reported. Paramount has been struggling for months, in large part due to competition from streaming rivals, and recently had a potential partnership with Warner Bros. Discovery fall apart. The New York Times reported that, in an effort to sweeten the deal, Skydance offered a “$3 billion cash infusion to pay down debt and buy back shares,” at least some of which would come from the Ellisons, and to give Paramount shareholders a bigger stake than previously planned. Since the start of the year, Paramount’s shares have fallen almost 15%.
Forbes Valuation
Forbes estimates Larry Ellison—whose son founded Paramount’s potential buyer—to be worth about $146.2 billion as of Monday evening, making him the fifth wealthiest person in the world. Ellison made most of his fortune with his tech company, Oracle.
