Paramount Streamlines Board Amid Skydance Deal Talks: Shrinking to Seven Directors
Paramount Global (PARA.O) is undergoing significant changes as four board members, including prominent figures like former Spotify executive Dawn Ostroff and Sony Entertainment ex-president Nicole Seligman, will not seek re-election at the company’s annual investor meeting in June. This decision will reduce the board’s size from 11 to 7 members, with controlling shareholder Shari Redstone and CEO Robert Bakish among the nominees to remain.
The board shake-up comes amid exclusive merger talks between Paramount and Skydance Media, an independent media house known for films like “Top Gun: Maverick.” Led by CEO David Ellison, Skydance’s potential merger with Paramount could alleviate some of the latter’s heavy debt burden. However, Paramount’s shares have dipped recently, possibly due to reported deal terms that would see Skydance buy out Redstone’s majority stake while leaving Paramount as a public company.
Redstone’s National Amusements holds a 77% voting stake in Paramount, giving it control over the entertainment giant. While Skydance is a key player in the merger talks, other suitors, including private equity firm Apollo Global Management, have also shown interest in Paramount.
The entertainment company has faced various challenges, including a soft advertising market, strikes by Hollywood writers and actors, and the impact of cord-cutting on its TV business. These factors have contributed to Paramount’s need to explore strategic options, including potential mergers, to navigate the evolving media landscape.
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