After much chatter of a shakeup at its top rung, entertainment major Paramount (NASDAQ:PARA) has replaced its CEO Bob Bakish. A trio of senior executives will oversee the CEO’s office at the company, coinciding with Paramount navigating a possible change in its ownership.
Bakish stepped down from Paramount’s board and CEO position. Now, the office of its CEO will consist of George Cheeks, the President and CEO of CBS; Chris McCarthy, the President and CEO of Showtime/MTV Entertainment, and Paramount Media Networks; and Brian Robbins, the President and CEO of Paramount Pictures and Nickelodeon.
PARA’s Nail-Biter Merger Drama
Paramount noted that the office of the CEO is working with the company’s Board on a long-range plan to drive growth, optimize its streaming strategy, and fortify its balance sheet. However, the first agenda on the table is likely to be Paramount’s potential deal with David Ellison-led Skydance Media. Ellison, the son of Larry Ellison, the founder of Oracle Corp (NYSE:ORCL), is involved in the negotiations.
As per Bloomberg, potential deal terms include David Ellison acquiring the voting stake held by Shari Redstone, the Chair of Paramount, and her family. This, in turn, would pave the way for a merger between Skydance and Paramount, with Ellison assuming the role of the new entity’s CEO.
Importantly, the exclusivity period for deal talks between Paramount’s independent board members and Ellison ends this Friday. Meanwhile, some shareholders at the company have been pushing for other options, including a sale. Potential suitors such as Apollo Global are also in the mix, making the final trajectory for Paramount a little less certain, at least for now.
Is PARA a Buy, Sell, or a Hold?
The merger drama at Paramount comes amid a massive 67% slump in the company’s share price over the past three years. Overall, the Street has a Hold consensus rating on the stock, alongside an average PARA price target of $13.29.
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