The co-CEOs of Paramount Global have reassured their staff about business continuity amid a potential takeover by Skydance Media. Despite the change of ownership expected to be finalized in 2025, regular operations and strategic plans will continue.
The message emphasized that staff should continue to focus on their roles. The CEOs pointedly remarked the acquisition is merely corporate news, not something that significantly affects the company’s day-to-day operations. They also expressed optimism about the potential benefits of the partnership with Skydance Media.
However, the statement didn’t speak about the future of existing leadership post the acquisition. It is confirmed though that Skydance Media’s CEO, David Ellison, will become the CEO and chairman of the combined entity while Jeff Shell, a former executive at NBCUniversal, will serve as president.
The controlling shareholder of Paramount Global has admired the current leadership’s work. They acknowledge the need for exploration to ensure future growth and enhanced profitability. Their strategic agenda includes transforming the company into an advanced, globally diverse company that rewards its shareholders significantly.
The co-CEOs aim for operational independence while introducing their town hall strategy. The latter includes organizational restructuring efforts like team refining, staff reduction, discontinuing extraneous operations, and divestments to maximize assets.
Paramount Global’s stance on Skydance takeover
The strategy aims at balancing organizational efficiency with the interests of the employees and stakeholders.
As part of the new strategy, Paramount+ is reportedly looking for investors, and BET Media is up for sale. With the strategy’s cost-cutting measures, they aim to achieve significant savings. Skydance Media is seen as a strategic partner who adds value to Paramount’s extensive intellectual property and streaming platforms.
Paramount Global also needs to withstand Wall Street’s scrutiny due to massive long-term debt. The company doesn’t face any immediate repayment concerns. The challenge lies in sustaining its streaming services while managing the said debt.
Meanwhile, Paramount’s board will utilize a 45-day “go-shop” period to consider other acquisition options. Regardless, Skydance Media remains the contender in the forefront. Paramount’s share value has experienced a minor post-trading upswing.
The co-CEOs have portrayed the Skydance Media deal as a crucial element for Paramount’s future. The executives highlighted that all acquisition steps will adhere to strict corporate governance principles and follow the necessary regulatory protocols.
