Paramount Global Announces Triumvirate Leadership as CEO Bakish Steps Down

On March 28, 2022, Paramount Global made a significant announcement regarding changes in its executive team. Bob Bakish, the current CEO of the film, television, and multimedia company, is stepping down from his position.

Following Bakish's departure, the company has appointed a trio of executives to form a new “Office of the CEO.” This group will be led by George Cheeks, the CEO of CBS; Chris McCarthy, CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks; and Brian Robbins, the CEO of Paramount Pictures.

The company emphasized that the new leadership team will closely collaborate with Chief Financial Officer Naveen Chopra and the board of directors to address key issues and steer the company forward.

Among the pressing matters facing the new CEO trio is a reported $11 billion acquisition offer from private-equity firm Apollo Global. Additionally, there have been discussions about a potential merger with Skydance, a media company known for its collaboration on Paramount releases such as “Top Gun: Maverick” and “Mission: Impossible – Dead Reckoning.”

Paramount also released its earnings report for the quarter ending on March 31, 2022. The company reported a net loss of $554 million, or 87 cents per share, representing a significant reduction from the $1.1 billion net loss, or $1.74 per share, in the corresponding period of the previous year. Notably, Paramount reported a 5.8% increase in revenue, amounting to $7.66 billion compared to $7.27 billion in the same period a year earlier.

When adjusted for one-time gains and costs, the earnings for the quarter came to 62 cents per share, surpassing the expectations of analysts. According to a FactSet poll, the anticipated earnings were 35 cents per share.

Implications of Leadership Changes

The appointment of a CEO troika represents a distinctive approach to leadership, with implications that differ from the more common co-CEO structure. While co-CEOs are not unprecedented, the study published in the Harvard Business Review revealed that companies led by co-CEOs often demonstrate better-than-average stock performance. However, the complexities associated with a troika of CEOs present unique organizational challenges, including the potential for voting imbalances and decision-making dynamics.

As Paramount navigates these changes, it concluded its conference call with the theme to “Mission: Impossible,” possibly alluding to the challenges that lie ahead for the company in the evolving entertainment landscape.