Bob Bakish, then Chairman and CEO of Viacom Inc., speaks at the Mobile World Congress Americas event in Los Angeles, California, United States, Tuesday, October 22, 2019.
Patrick T. Fallon | Bloomberg | Getty Images
Paramount Global’s board of directors is preparing to fire CEO Bob Bakish as early as Monday morning, according to sources familiar with the matter.
Paramount Global reports quarterly results on Monday. Bakish will not be on the call, the people said.
The board is expected to rely on the company’s division heads instead of a CEO as it negotiates a possible merger with Skydance Media. Paramount Global has set up a special committee to study the deal. The two companies are in exclusive talks to complete a deal until May 3, although that window could be extended.
Bakish has lost the trust of Paramount Global’s majority shareholder, Shari Redstone, according to people familiar with his thinking. Redstone wanted to move to oust Bakish ahead of Paramount Global’s carriage talks with Charter Communications, which are key to locking in the company’s value in its merger talks with Skydance, the sources said.
A spokesperson for Paramount Global declined to comment.
Paramount and Skydance have made progress on a final deal, under which Bakish would leave Paramount, CNBC reported Thursday. Skydance intends to appoint CEO David Ellison as head of Paramount, according to people familiar with the matter.
Privately, Bakish opposed the merger, saying it could dilute common shareholders, according to people familiar with the matter.
Under the terms of the deal, nearly 50% of the combined company would be owned by Skydance and its private equity partners, CNBC reported April 5. Common shareholders would own the remainder of the company, which would continue to be publicly traded.
News Source : www.cnbc.com
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