Paramount Global’s (NASDAQ:PARA) board is preparing to fire Chief Executive Officer Bob Bakish as soon as Monday morning, according to people familiar with the matter.
Paramount Global reports its quarterly earnings Monday, and reports are Bakish won’t be on the call.
The board is expected to lean on company division heads in lieu of a CEO while it negotiates a possible merger with Skydance Media. Paramount Global has set up a special committee to explore the deal. The companies are in exclusive talks to pursue a deal until May 3, though that window could be extended.
Bakish has lost the trust of Paramount Global controlling shareholder Shari Redstone, according to people familiar with her thinking. Redstone wanted to make a move to oust Bakish before Paramount Global’s carriage negotiation with Charter Communications, which is pivotal for setting a value for the company in its merger talks with Skydance.
Media reports last week had Paramount and Skydance making headway on a final deal, under which Bakish would leave Paramount. Reports say Skydance intends to name its CEO David Ellison to helm Paramount.
Under the deal terms, almost 50% of the merged company would be owned by Skydance and its private equity partners. Common shareholders would own the remainder of the company, which would continue to trade publicly.
PARA shares, meanwhile, leaped 75 cents, or 6.3%, early Monday to $12.66.
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