Paramount says CEO Bob Bakish is stepping down, will be replaced by a trio of executives

by | Apr 29, 2024 | Business

In this articlePARAFollow your favorite stocksCREATE FREE ACCOUNTBob Bakish, president and chief executive officer of Viacom, attends the fourth day of the annual Allen & Company Sun Valley Conference, July 11, 2023 in Sun Valley, Idaho.┬áDavid A. Grogan | CNBCParamount Global CEO Bob Bakish is stepping down, the company announced Monday, as merger negotiations with Skydance Media continue.Bakish climbed the corporate ladder after joining Viacom in 1997, until he became CEO of the company in 2016. Following the merger of Viacom and CBS, he became CEO of the combined company in 2019, which was later renamed Paramount Global. He is also leaving the company’s board of directors, Paramount said Monday.Bakish will be replaced by what the company called an “Office of the CEO.” Paramount will now be led by CBS president and CEO George Cheeks; Chris McCarthy, president and CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks; and Brian Robbins, the head of Paramount Pictures and Nickelodeon. The company said the three executives will work closely with Paramount CFO Naveen Chopra and the board.In the release Monday, Paramount said the new leadership is “working with the board 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.”Paramount also reported its first-quarter earnings after the bell Monday and held an earnings call during which the newly appointed company heads gave a brief statement and said they would be back “in short order” to share details on future plans.Chopra led the call, which lasted under 10 minutes and didn’t include questions from analysts.Streaming boostThe company posted mixed results for the first quarter, beating on earnings but missing on revenue. Paramount reported 62 cents per share for the period, excluding items, versus estimates of 36 cents a share, according to analysts polled by LSEG. For revenue the company posted $7.69 billion versus analyst estimates of $7.73 billion, according to LSEG.Overall revenue was up 6% compared with the same period last year, propelled by streaming and the Super Bowl.The company’s direct-to-consumer streaming segment, which includes flagship service Paramount+, Pluto TV and BET+ saw revenue rise 24% to about $1.88 billion.Paramount said it added 3.7 million Paramount+ subscribers during the quarter, bringing the total to 71 million. Losses related to streaming narrowed to $286 million compared with losses of $511 million during the same period last year.Advertising revenue in the streaming segment was up, largely due to the Super Bowl, which aired in February on CBS, cable TV channel Nickelodeon and Paramount+.Similarly, advertising revenue in Paramount’s TV media unit, which includes broadcaster CBS and cable TV channels such as MTV and Nickelodeon, grew 14% due to the Super Bowl.The top NFL event provided a boost during what has been a sluggish advertising environment for traditional TV networks. Still, streaming platforms and digital companies have reported advertising revenue growth, indicating the market is rebounding, at least for those areas.Overall, TV Media revenue was up 1% to $5.23 billion. Affiliate and subscription revenue fell 3% as cord-cutting continued, and licensing and other revenue dropped 25%, including the impact of the Hollywo …

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[mwai_chat context=”Let’s have a discussion about this article:nnIn this articlePARAFollow your favorite stocksCREATE FREE ACCOUNTBob Bakish, president and chief executive officer of Viacom, attends the fourth day of the annual Allen & Company Sun Valley Conference, July 11, 2023 in Sun Valley, Idaho.┬áDavid A. Grogan | CNBCParamount Global CEO Bob Bakish is stepping down, the company announced Monday, as merger negotiations with Skydance Media continue.Bakish climbed the corporate ladder after joining Viacom in 1997, until he became CEO of the company in 2016. Following the merger of Viacom and CBS, he became CEO of the combined company in 2019, which was later renamed Paramount Global. He is also leaving the company’s board of directors, Paramount said Monday.Bakish will be replaced by what the company called an “Office of the CEO.” Paramount will now be led by CBS president and CEO George Cheeks; Chris McCarthy, president and CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks; and Brian Robbins, the head of Paramount Pictures and Nickelodeon. The company said the three executives will work closely with Paramount CFO Naveen Chopra and the board.In the release Monday, Paramount said the new leadership is “working with the board 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.”Paramount also reported its first-quarter earnings after the bell Monday and held an earnings call during which the newly appointed company heads gave a brief statement and said they would be back “in short order” to share details on future plans.Chopra led the call, which lasted under 10 minutes and didn’t include questions from analysts.Streaming boostThe company posted mixed results for the first quarter, beating on earnings but missing on revenue. Paramount reported 62 cents per share for the period, excluding items, versus estimates of 36 cents a share, according to analysts polled by LSEG. For revenue the company posted $7.69 billion versus analyst estimates of $7.73 billion, according to LSEG.Overall revenue was up 6% compared with the same period last year, propelled by streaming and the Super Bowl.The company’s direct-to-consumer streaming segment, which includes flagship service Paramount+, Pluto TV and BET+ saw revenue rise 24% to about $1.88 billion.Paramount said it added 3.7 million Paramount+ subscribers during the quarter, bringing the total to 71 million. Losses related to streaming narrowed to $286 million compared with losses of $511 million during the same period last year.Advertising revenue in the streaming segment was up, largely due to the Super Bowl, which aired in February on CBS, cable TV channel Nickelodeon and Paramount+.Similarly, advertising revenue in Paramount’s TV media unit, which includes broadcaster CBS and cable TV channels such as MTV and Nickelodeon, grew 14% due to the Super Bowl.The top NFL event provided a boost during what has been a sluggish advertising environment for traditional TV networks. Still, streaming platforms and digital companies have reported advertising revenue growth, indicating the market is rebounding, at least for those areas.Overall, TV Media revenue was up 1% to $5.23 billion. Affiliate and subscription revenue fell 3% as cord-cutting continued, and licensing and other revenue dropped 25%, including the impact of the Hollywo …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
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