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Skydance boss David Ellison to chop Paramount's three-headed CEO structure after merger: report
PGREParamount (PGRE) New York Post·2024-12-03 22:35

Core Viewpoint - Paramount's leadership structure is expected to undergo significant changes following the 8billionmergerwithSkydanceMedia,withpotentialdeparturesoftwoco−CEOsandaconsolidationoftelevisionassetsundernewleadership[1][5][11].LeadershipChanges−Themergerwilllikelyresultintheexitofco−CEOsChrisMcCarthyandBrianRobbins,whileGeorgeCheeksmayremainduetohisrelationshipwithSkydance′sdeputyJeffShell[5][6].−DavidEllison,thecurrentCEOofSkydance,willleadthecombinedcompanyaschairmanandCEO,indicatingamajorrestructuringofParamount′soperations[1][10].AssetConsolidation−EllisonplanstomergeallofParamount′stelevisionproperties,includingCBSandMTV,intoasingleunittoadapttodecliningviewershipoflinearbroadcasting[1][11].−TheconsolidationisdeemednecessaryasParamount′sfilmstudioisnotexpectedtoturnaprofitthisyear,highlightingtheneedforoperationalefficiency[12].FinancialAspects−SkydanceissettoacquiretheRedstonefamily′s778 billion merger with Skydance Media, with potential departures of two co-CEOs and a consolidation of television assets under new leadership [1][5][11]. Leadership Changes - The merger will likely result in the exit of co-CEOs Chris McCarthy and Brian Robbins, while George Cheeks may remain due to his relationship with Skydance's deputy Jeff Shell [5][6]. - David Ellison, the current CEO of Skydance, will lead the combined company as chairman and CEO, indicating a major restructuring of Paramount's operations [1][10]. Asset Consolidation - Ellison plans to merge all of Paramount's television properties, including CBS and MTV, into a single unit to adapt to declining viewership of linear broadcasting [1][11]. - The consolidation is deemed necessary as Paramount's film studio is not expected to turn a profit this year, highlighting the need for operational efficiency [12]. Financial Aspects - Skydance is set to acquire the Redstone family's 77% stake in Paramount's parent company, National Amusements, for 2.4 billion, along with a commitment to pay 15pershareforupto15 per share for up to 4.3 billion of common shares [15]. - Paramount's stock closed at $10.92, reflecting the market's response to the ongoing changes and merger developments [16]. Background Context - The leadership transition follows the ousting of former CEO Bob Bakish, with the current co-CEOs managing the company since late April [13]. - Ellison has been meeting with Paramount personnel to understand the company's operations in preparation for the merger [8].