Paramount's CEO Becky Shulman Steps Down... 'CEO Office' Established

Paramount Global, which is in merger talks with Skydance Media, officially announced the resignation of CEO Bob Bakish.

[Image source=Reuters Yonhap News]

On the 29th (local time), Paramount Global stated that instead of Bakish CEO stepping down, an 'Office of the CEO' composed of three senior executives will take on the role. The Office of the CEO consists of George Cheeks, CBS CEO; Chris McCarthy, Showtime/MTV Entertainment Studios and Paramount Media Networks CEO; and Brian Robbins, Paramount Pictures CEO.

Shari Redstone, the chairman of the board, said, "I have great trust in George, Chris, and Brian. They all have the ability to develop and execute," adding, "The establishment of the Office of the CEO will accelerate company growth and strengthen operations."

Bakish CEO's dismissal was anticipated early on. Previously, economic media CNBC reported that as merger talks between Paramount and Skydance progressed, Bakish CEO, who had opposed the merger fearing dilution of common shareholders, might step down. There were also analyses that Bakish CEO lost the trust of Redstone, the largest shareholder, during the merger discussions.

Bakish CEO joined Viacom in 1997 and became the company's CEO in 2016. After Viacom and CBS merged to form ViacomCBS, the predecessor of Paramount Global, in 2019, he served as the CEO of the merged company. The massive media group Paramount Global owns Paramount, CBS, Nickelodeon, Showtime, and more.

The Wall Street Journal (WSJ) evaluated, "Under Bakish CEO's leadership, Paramount made significant progress in streaming, renewed NFL rights, streamlined cable TV operations, and recorded Hollywood hits like 'Top Gun: Maverick,' but due to the decline in the TV business and losses in the streaming sector, its market value has dropped by half."

On the same day, Paramount Global also released its first-quarter earnings. The first-quarter net loss was $554 million, reduced from $1.12 billion in the same period last year. Thanks to the Super Bowl broadcast and streaming, first-quarter revenue increased by 5.8% to $7.69 billion. However, this fell short of market expectations ($7.73 billion). Additionally, the cumulative subscribers of the Paramount+ streaming service increased by 3.7 million to 71 million.

Meanwhile, on the New York Stock Exchange that day, Paramount Global's stock price closed up 2.85% compared to the previous session. It is also showing a firm rise in after-hours trading.