Welcome to Extreme Investor Network, where we bring you exclusive insights and analysis in the world of business news. Today, we dive into a thrilling plotline straight out of HBO’s hit show “Succession” involving Paramount Global and its upcoming CEO shakeup.
In a bold move set to shake the chessboard, Paramount Global is preparing to replace CEO Bob Bakish with a group of existing division heads. This strategic decision, set to be announced before earnings, comes as Paramount Global is on the verge of a merger agreement with Skydance Media. The departure of Bakish raises questions about Paramount’s future as a standalone company and whether this move could pave the way for a merger.
However, the deal has faced criticism from large shareholders, including Gamco Investors, Ariel Investments, Matrix, and Aspen Sky Trust, who argue that the merger with Skydance could potentially harm common shareholders due to dilution caused by billions of dollars in new equity.
On the other side of the table, controlling shareholder Shari Redstone stands to benefit significantly from the deal, with Skydance reportedly offering around $2 billion for her 77% voting shares in Paramount Global. This move has sparked opposition from Bakish and others at Paramount, who view the deal as lopsided and favoring Redstone.
As the drama unfolds, Redstone has opened the door to a “majority of the minority” vote on the Skydance deal, giving minority shareholders a chance to influence the outcome. This shift in control could sway the deal in favor of those who oppose it. Paramount Global’s shares have already seen a 5% increase in premarket trading in light of these developments.
Amidst talks of exclusivity and potential sweetened offers from Skydance, the possibility of a joint bid by Apollo Global and Sony presents an intriguing alternative. However, regulatory concerns and the looming Charter Communications carriage renewal deal add further layers of complexity to the situation.
Stay tuned as the CEO saga at Paramount Global unfolds, and be sure to visit Extreme Investor Network for more exclusive updates and expert analysis on all things business news.
