Paramount CEOs Recognize “The Last Several Months Have Not Been Easy,” Tell Staff They Have A Plan

Paramount Global co-CEOs George Cheeks, Brian Robbins and Chris McCarthy thanked staff in a memo today, obtained by Deadline, for tough months rocked by Skydance merger speculation. With that deal a no go, they said, they have plan, one mostly laid out at last week’s annual shareholders meeting, to take the company into the future.

While deals are not off the table, the focus of the recently installed executive trio will be to streamline the company, optimize streaming and look to sell off non-core assets. It’s thought likely Par will consider a sale of BET. It put the asset on the block last year but didn’t like the offers it got so yanked it off. Paramount+ is likely to partner with another streamer. The Office of the CEO, which replaced Bob Bakish in May, will also look to cut non-content costs.

The pep talk comes after Paramount’s controlling shareholder Shari Redstone ended months of merger talks with David Ellison’s Skydance. It was a complex deal that would have seen Skydance acquire Redstone’s controlling stake of Par, which would then merge with Skydance. Redstone is likely now to considered a simple sale of her controlling interest. Edgar Bronfman Jr., backed by Bain Capital, is interested, as is producer Steven Paul with a group of deep pocketed investors. But she he may wait a bit to do anything, hoping Paramount’s debt will fall and its value rise in coming months.

Full memo below:

Hi Everyone, As promised, we want to be as transparent as possible and share information whenever we can. As you heard yesterday, the proposed transaction with Skydance Media is not moving forward. So, what does this mean for Paramount? While the Board will always remain open to exploring strategic alternatives that create value for shareholders, we continue to focus on executing the strategic plan we unveiled last week during the Annual Shareholder Meeting, which we are confident will set the stage for growth for Paramount. Work is already underway, as we focus on three pillars:

Transforming our streaming strategy to accelerate its path to profitability Streamlining the organization and reducing non-content costs Optimizing our asset mix, by divesting some of our businesses to help pay down our debt   As we advance each of these initiatives, we will continue to prioritize investment in our world class franchises, films, series and sports, which are the core of our business. Importantly, we want to thank you for your hard work and your continued focus. We recognize that the last several months have not been easy as we manage through ongoing change and speculation. And, we should all expect some of this to undoubtedly continue as the media industry and our business continue to evolve.  As we look ahead, we are confident about what’s in store for Paramount. We believe in you and we believe in Paramount. We have the content, the people, and the right plan to ensure a strong future. And, we look forward to discussing our strategy in more detail at our Global Town Hall on June 25. In the meantime, we hope you’re able to participate in Community Day and spend time with colleagues while giving back to local communities around the world. Thank you again for all that you do. Best,
George, Chris and Brian