In this articlePARAFollow your favorite stocksCREATE FREE ACCOUNTBob Bakish, CEO of Paramount, speaks with CNBC’s David Faber on Sept. 6, 2023.CNBCIn what could easily be a plotline from HBO’s hit show “Succession,” Paramount Global plans to replace Chief Executive Officer Bob Bakish with a cohort of existing division heads on Monday, according to people familiar with the matter, in a chessboard-altering move designed to accelerate the company’s future — one way or another.Paramount is expected to announce Bakish’s departure Monday before reporting earnings, which comes after the markets close.The decision to remove Bakish as CEO comes as Paramount Global closes in on a merger agreement with Skydance Media. His departure throws into question Paramount’s near-term future as a standalone company, which could help force through a merger agreement.A number of large common shareholders, including Gamco Investors, Ariel Investments, Matrix and Aspen Sky Trust have publicly criticized the deal, arguing it destroys value for common shareholders. The Skydance offer would include billions of new equity that would dilute common holders.Shari Redstone, president of National Amusements and controlling shareholder of Paramount Global, walks to a morning session at the Allen & Company Sun Valley Conference in Sun Valley, Idaho, July 12, 2023.David A. Grogan | CNBCMeanwhile, Skydance would pay about $2 billion to controlling shareholder Shari Redstone for her 77% voting shares in the company by acquiring her holding company National Amusements, CNBC has previously reported, marking a significant premium for Redstone, whose economic interest in the company has fallen to less than $1 billion.The imbalance has led many at Paramount, including Bakish, to speak out against the deal, which they see as benefiting only Redstone.”There’s no question I’d rather see no sale,” Gamco Chairman and CEO Mario Gabelli told The New York Post earlier in April.Majority of the minorityThat’s where Monday’s CEO drama begins.Redstone is now open to a so-called “majority of the minority” vote on the Skydance deal, according to a person familiar with her thinking. Bloomberg and The Wall Street Journal first reported the development Sunday.That’s a significant turn in the Skydance talks. It means minority shareholders will now have a say in whether the deal proceeds, giving the deal’s denouncers potential sway in the outcome. Paramount Global shares jumped about 5% in premarket trading Monday.Typically, Paramount Global shareholders, such as Gabelli, would compare an offer to the standalone company’s prospects — hence his comments about not seeing a sale at all.But by removing Bakish, Redstone and the Paramount Global board are now throwing the status quo into chaos. The company will no longer have a leader or a clear go-forward strategy. Redstone may be trying to force common holders to choose a sale by effectively destabilizing the company without one.Exclusivity talks with Skydance are set to end May 3. CNBC reported Thursday that Skydance was inching toward valuation terms but wanted a two-week extension on exclusivity, which the special committee that is considering the deal hadn’t yet granted.”National Amusements specifically requested that the Paramount board form a special committee to exercise their dependent judgment in considering a potential transaction with Skydance,” a National Amusements spokesperson said in a statement provided to CNBC. “National Amusements has no role on the committee, and we respect the committee’s process and ultimate decision on whether the Skydance deal presents an attractive transaction for Paramount and whether they want to continue to move forward.”With a majority of the minority vote in place, Skydance plans to sweeten its offer to make it more appealing to common holders, Bloomberg reported. It’s unclear if the company will be able to alter terms dr …
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[mwai_chat context=”Let’s have a discussion about this article:nnIn this articlePARAFollow your favorite stocksCREATE FREE ACCOUNTBob Bakish, CEO of Paramount, speaks with CNBC’s David Faber on Sept. 6, 2023.CNBCIn what could easily be a plotline from HBO’s hit show “Succession,” Paramount Global plans to replace Chief Executive Officer Bob Bakish with a cohort of existing division heads on Monday, according to people familiar with the matter, in a chessboard-altering move designed to accelerate the company’s future — one way or another.Paramount is expected to announce Bakish’s departure Monday before reporting earnings, which comes after the markets close.The decision to remove Bakish as CEO comes as Paramount Global closes in on a merger agreement with Skydance Media. His departure throws into question Paramount’s near-term future as a standalone company, which could help force through a merger agreement.A number of large common shareholders, including Gamco Investors, Ariel Investments, Matrix and Aspen Sky Trust have publicly criticized the deal, arguing it destroys value for common shareholders. The Skydance offer would include billions of new equity that would dilute common holders.Shari Redstone, president of National Amusements and controlling shareholder of Paramount Global, walks to a morning session at the Allen & Company Sun Valley Conference in Sun Valley, Idaho, July 12, 2023.David A. Grogan | CNBCMeanwhile, Skydance would pay about $2 billion to controlling shareholder Shari Redstone for her 77% voting shares in the company by acquiring her holding company National Amusements, CNBC has previously reported, marking a significant premium for Redstone, whose economic interest in the company has fallen to less than $1 billion.The imbalance has led many at Paramount, including Bakish, to speak out against the deal, which they see as benefiting only Redstone.”There’s no question I’d rather see no sale,” Gamco Chairman and CEO Mario Gabelli told The New York Post earlier in April.Majority of the minorityThat’s where Monday’s CEO drama begins.Redstone is now open to a so-called “majority of the minority” vote on the Skydance deal, according to a person familiar with her thinking. Bloomberg and The Wall Street Journal first reported the development Sunday.That’s a significant turn in the Skydance talks. It means minority shareholders will now have a say in whether the deal proceeds, giving the deal’s denouncers potential sway in the outcome. Paramount Global shares jumped about 5% in premarket trading Monday.Typically, Paramount Global shareholders, such as Gabelli, would compare an offer to the standalone company’s prospects — hence his comments about not seeing a sale at all.But by removing Bakish, Redstone and the Paramount Global board are now throwing the status quo into chaos. The company will no longer have a leader or a clear go-forward strategy. Redstone may be trying to force common holders to choose a sale by effectively destabilizing the company without one.Exclusivity talks with Skydance are set to end May 3. CNBC reported Thursday that Skydance was inching toward valuation terms but wanted a two-week extension on exclusivity, which the special committee that is considering the deal hadn’t yet granted.”National Amusements specifically requested that the Paramount board form a special committee to exercise their dependent judgment in considering a potential transaction with Skydance,” a National Amusements spokesperson said in a statement provided to CNBC. “National Amusements has no role on the committee, and we respect the committee’s process and ultimate decision on whether the Skydance deal presents an attractive transaction for Paramount and whether they want to continue to move forward.”With a majority of the minority vote in place, Skydance plans to sweeten its offer to make it more appealing to common holders, Bloomberg reported. It’s unclear if the company will be able to alter terms dr …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
