The trio of Paramount International co-CEOs offered an update Tuesday at a town hall for the company’s more than 20,000 employees, where they discussed their efforts to reduce costs, boost earnings and reduce bad debt following a potential merger with Skydance. Concerns had increased regarding the plan. Known as off.
3 professionals – George Cheeks, Chairman and CEO of CBS; Chris McCarthy, President and CEO, Showtime/MTV Leisure Studios and Paramount Media Networks; And Brian Robbins, president and CEO of Paramount Footage and Nickelodeon, has been hired as co-CEO following the firing of Bob Bakish in April.
At the June 25 town hall, which began at 10 a.m. across the Pacific Ocean at the studio’s Paramount Theater in L.A., professionals addressed a major issue of concern to some in the ranks and reports: layoffs and alternative measures to obtain the $500 million. Aim for annual prices, which the trio laid out at the June 4 annual shareholder meeting. According to the co-CEO, since then, they have made progress in getting rid of duplicate activity objectives, along with working well during company objectives like jail and company advertising, the resource explains. selection,
On the other hand, in their prepared remarks, professionals didn’t talk about the timing of when layoffs could pile up around the company or how steep the cuts might be. During the question-and-answer portion of the town hall, the co-CEO was asked if he had any timeline for reducing activity, but he did not allow it.
As previously disclosed by the trio of professionals, Cheeks said that Paramount leaders are “considering selling certain Paramount-owned properties” and adding, “In fact, we have asked Paramount to assist us in this process.” “We have already hired bankers for this – and we will use the proceeds to repay debt and strengthen our balance sheet.” He did not specify which Paramount International properties were also subject to the restrictions, though they may include BET Media, the VidCon writer tradeshow series and Paramount footage volumes.
The City Hall meeting was originally slated for June 5, but the co-CEOs rescheduled it for June 25, leading to “ongoing speculation about a potential M&A.” On June 11, Paramount International’s controlling shareholder Shari Redstone ended talks regarding the corporate’s merger with David Ellison’s Skydance Media.
What Went Wrong: Paramount’s Failed Merger Talks and the Struggle to Save the Corporate
At this point, Redstone would likely be considering selling its stake in National Amusements Inc., which owns 77% of the voting stock in Paramount. A proposal for the NAI to bring forward specific passion has included ex-Warner Song and Seagram boss Edgar Bronfman Jr. as well as Ben Capital and producer and filmmaker Steven Paul.
Earlier in the town hall, Robbins talked about the ongoing M&A controversy. “We would like to take some time to acknowledge the challenges of all the M&A speculation surrounding our company. We know what a difficult and disruptive time this has been,” Robbins said. “And while we can’t say the noise will disappear, we’re here today to create a plan moving forward that can set us up for success no matter what path the company chooses to go down.”
The co-CEO addressed the fact that while Paramount’s total earnings grew by 13% during 2018-23, adjusted ongoing revenue streams declined by 61% during that period. McCarthy informed staff, “Let me be clear… a 61% decline in profits is absolutely unacceptable.” “We need to act now to reverse this trend.”
Another key pillar of 3 Pros’ strategy is to prepare for a symmetrical decline in the profitability of its Paramount+ streaming business. McCarthy informed staff that on the global gateway, “We are advancing negotiations with potential partners that will significantly transform the scale and economics of the service and make it profitable and drive long-term value. This approach is in line with the U.S. Can also serve as a model for.
At the June 4 shareholders’ meeting, Cheeks, Robbins and McCarthy presented a summary on their go-it-alone strategy. The projected activity cuts will create a “leaner and more agile” corporate, Cheeks said, with layoffs aimed at eliminating “duplicated teams and functions in organization, real estate, marketing and other corporate overhead categories.”
About 500 employees gathered at the Paramount Theater’s town hall Tuesday, with several thousand watching via livestream. The co-CEOs spoke at a roughly one-on-one pace, including a question-and-answer session during which they asked questions of the group of employees ahead of their prepared remarks.
Pictured above (left to right): George Cheeks, Chris McCarthy, Brian Robbins
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