Paramount Global (PARA) has announced that chief executive officer (CEO) Bob Bakish is stepping down amid ongoing merger talks at the entertainment company.
Paramount said Bakish would be stepping down and that his role would be filled by three senior executives: CBS President and CEO George Cheeks; Chris McCarthy, president and CEO of Paramount Media Networks; and Brian Robbins, CEO of Paramount Pictures.
Paramount said the three will work closely with chief financial Officer (CFO) Naveen Chopra and the board of directors.
News that Bakish is stepping down comes as Paramount engages in exclusive discussions to be acquired by privately held Skydance Media.
According to media reports, Bakish was not in favour of the acquisition talks with Skydance Media and was viewed as an obstacle to a deal getting done.
Bakish had been CEO of Paramount Global since the company’s creation in 2019 through a merger with CBS Studios.
The CEO change was announced alongside Paramount’s first-quarter earnings.
The film and television studio reported earnings per share of $0.62 U.S., which was better than the $0.35 U.S. expected among analysts.
Paramount’s revenue totaled $7.69 billion in Q1, which fell short of forecasts that called for $7.74 billion in sales. Revenue was up 6% from a year earlier.
Paramount said that its total subscription revenue grew 22%, advertising revenue increased 31%, and revenue at its Paramount+ streaming service increased 51% during Q1.
Paramount+ reported 3.7 million net new subscribers, for a total of more than 71 million monthly subscriptions.
Revenue at the company’s legacy TV unit grew only 1% to $5.2 billion U.S. Filmed entertainment revenue increased 3%, said the company.
Paramount Global’s stock has declined 48% over the last 12 months and currently trades at $12.25 U.S. per share.
