Bob Bakish is stepping down as CEO of Paramount amid the company’s proposed merger with Skydance and struggles in its streaming business.
Control of Paramount will be transitioned to an office of the CEO comprised of three executives leading major divisions.
“Hollywood studio Paramount Global has been downgraded to junk status by S&P, which cited the ongoing plunge in cable TV subscriptions as the reason for the credit rating change,” the report stated.
“Paramount — which owns numerous linear TV properties including CBS, Nickelodeon, MTV, BET, and Comedy Central — is facing a dire economic forecast that is shared by other legacy studios,” it added.
Some shareholders oppose the Skydance merger, believing it would enrich controlling shareholder Shari Redstone at their expense.
Skydance recently sweetened its offer to acquire Paramount but deal uncertainty remains.
Paramount has faced significant challenges as the cable industry declines and its streaming platform Paramount+ loses money, contributing to a credit downgrade to junk status.
The departure of Bakish is seen as putting additional pressure on Paramount leadership to negotiate the best possible merger terms for shareholders.
