Paramount confirms Bakish exit, with Cheeks, McCarthy & Robbins to form “Office of the CEO”

L-R: George Cheeks, Chris McCarthy & Brian Robbins (Source: Paramount Global)

Paramount Global has confirmed the exit of CEO Bob Bakish and named George Cheeks, Chris McCarthy and Brian Robbins to head up the company.

Bakish’s exit from Paramount follows concerns about the proposed Skydance acquisition, which is supported by primary shareholder and executive chair Shari Redstone.

Those behind that deal upped the proposed cash injection overnight from $2bn to $3bn in a bid to win support from other shareholders, as Sony Pictures Entertainment and private equity outfit Apollo Global Management look to enter the fray with their own offer as soon as this week.

Bakish’s exit comes amid a reported falling out with Redstone over the Skydance deal, with a new “Office of the CEO” to be helmed by: Robbins, president & CEO of Paramount Pictures & Nickelodeon; McCarthy, president & CEO, Showtime/MTV Entertainment Studios and Paramount Media Networks; and Cheeks, president & CEO of CBS.

The trio’s names had been circulating as potential co-leaders of the company in the event of Bakish’s exit, with the execs now confirmed to take charge, working closely alongside CFO Naveen Chopra and the board of directors.

Bob Bakish (Source: MIPCOM)

Paramount said that the three execs and the board are working 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.”

Shari Redstone, chair of the board, commented: “I have tremendous confidence in George, Chris and Brian. They have both the ability to develop and execute on a new strategic plan and to work together as true partners.”

Bakish’s exit ends a 27-year run at the company, with the exec having originally joined Viacom in 1997, becoming CEO in 2016, before being appointed to lead the newly combined ViacomCBS (now Paramount Global) in 2019.

Redstone thanked Bakish for “his many contributions over his long career,” though Paramount notably did not share any comment from the outgoing CEO.

Skydance talks continue

Bakish’s exit comes as the merger plans with Skydance rumble along.

The exclusive talks will continue until 3 May, with current proposed deal seeing Skydance and its private equity backers taking ownership of almost 50% of the merged company.

The rest of the firm would be owned by the common shareholders and would be publicly traded. Bakish had reportedly argued that this would dilute the value for these shareholders.

Paramount’s assets include Nickelodeon, Comedy Central, Showtime and the Paramount+ streaming network, and is home to the Yellowstone and Star Trek franchises. Its studio, Paramount Pictures, is behind the Mission: Impossible and Top Gun films.

Bakish’s exit came on the same day as Paramount’s Q1 earnings report, which saw revenue rise by 5% to $7.69bn, while operating losses reduced to $417m, from $1.23bn at the same time last year.

Chopra lead the earnings conference call, which lasted just 10 minutes and in which executives did not take any questions.