Investing.com – There is “increasing uncertainty” surrounding Paramount Global following the announcement of CEO Bob Bakish’s resignation, Needham analysts said in a note in which they downgraded the Hollywood media giant from Buy to Hold.
Bakish’s departure from Paramount comes amid ongoing talks about a potential collaboration with David Ellison’s production house Skydance Media.
George Cheeks, CEO of CBS, Chris McCarthy, CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks, and Brian Robbins, CEO of Paramount Pictures and Nickelodeon, were appointed to the newly created office of the CEO to “lead and oversee the company moving forward “, the company said.
Needham analysts question the change, arguing Paramount needs stable leadership to negotiate with Skydance and combat stiff competition from its flagship streaming service Paramount+.
“We have never heard anyone argue that a three-person committee is better at creating value for shareholders or employees than a single leader reporting to the Board,” they said. “No amount of management drama this close to selling a company adds value to shareholders.”
Various media sources reported Monday that Skydance had softened its bid for control of Paramount, offering to invest $3 billion in the combined company, which could be used to pay down debt and buy back shares.
Yasin Ebrahim contributed to this report.