Paramount Global CEO Bob Bakish is expected to be fired from the company, two people familiar with the matter said.
Bakish's departure comes at a time when Paramount's future is in jeopardy.
The company is currently in an exclusive 30-day negotiation period with technology mogul David Ellison, whose Skydance Media team is partnering with investment firms Redbird Capital and KKR to become Paramount's controlling shareholder. It acquired National Amusements, the holding company of a certain Shari Redstone. The exclusive negotiation period ends in early May.
Under a complex two-phase proposal, Ellison would gain control of a media company that includes the prestigious Melrose Avenue Paramount movie studio, broadcast network CBS, and various cable channels such as MTV and Comedy Central. . Ellison's camp will pay National Amusements $2 billion, after which Paramount will acquire Skydance.
But shareholders balked at reports about Mr. Ellison's proposal, arguing that it would dilute the value of Redstone's shares while valuing them at a premium. Several shareholders have said they want a deal with private equity firm Apollo Global Management, which has offered $26 billion, including assuming Paramount's debt.
Bakish was said to have opposed the Skydance deal. Redstone is also unhappy with some of Bakish's decisions, such as not selling Showtime, according to a person familiar with the matter. Meanwhile, the company suffered huge losses on its streaming service Paramount+.
The company, now known as Paramount Global, was formed in 2019 through the merger of Viacom and CBS. But the merger never convinced Wall Street of its promise. In the last year alone, Paramount Global stock has lost nearly half its value.
Recently, Sony has been in talks to potentially participate in a bid by Apollo, which could see the Japanese entertainment electronics company acquire a significant majority stake in Paramount.
CNBC and Variety first reported the news of Bakish's ouster. CNBC said in a report, citing unnamed sources, that Bakish could be fired as early as Monday.
A representative for Paramount declined to comment.
Bakish was named CEO in 2016 after a turbulent year for the company, then known as Viacom. At the time, Viacom's stock price had fallen 45% in two years as it faced declining ratings at some of its major networks, including Comedy Central and MTV, and struggles at its Paramount Pictures movie studio.
After Redstone orchestrated the Viacom-CBS merger, Bakish became CEO of the combined company.
Bakish has served on Viacom's board since 1997. Prior to that, he was a management consultant where he earned his MBA from Columbia Business School.
In 2016, Redstone described Bakish as an “exemplary forward thinker” who “embraces destruction and brings his team to his side.”