From CNBC: 2024-04-29 16:42:04

Bob Bakish, CEO of Paramount, is being replaced by existing division heads, accelerating the company’s future. Paramount is closing in on a merger with Skydance, throwing the company’s standalone future into question. Skydance is waiting for a response from Paramount’s special committee on a new deal with lower terms for controlling shareholder Shari Redstone.

Several large common shareholders criticize the Skydance deal, arguing it destroys value. The possibility of a “majority of the minority” vote could sway the deal outcome. Skydance is ready to walk away if such a vote is mandated, as it would change the deal structure significantly. Paramount shares rose 3% on Monday.

By removing Bakish, Paramount Global destabilizes its leadership and future strategy. Exclusivity talks with Skydance are ending soon as a potential offer from Apollo Global and Sony looms. Paramount also has an important carriage renewal deal with Charter Communications coming up, adding uncertainty to the company’s future.



Read more at CNBC: Skydance extends final offer to Paramount as merger talks stick