Staff Reports
Paramount Global, a big entertainment company, has been having some troubles lately. A news website called Breitbart said the company’s streaming service lost more than $1 billion in six months in 2023. That’s a lot of money! Because of this bad news, the CEO, Bob Bakish, decided to quit this week.
The company is not doing well financially, so they are thinking about teaming up with another company called Skydance Media. Paramount is run by a lady named Shari Redstone. She agreed to sell her part of the company to someone else. But not everyone thinks joining with Skydance is a good idea.
Paramount CEO Bob Bakish Resigns Amid Financial Difficulties, Possible Merger https://t.co/wkuBuUlhNK
— DMac (@ErinShaleah) May 1, 2024
Some people who own stock in Paramount don’t like the plan to merge with Skydance. They think it will only help Redstone and not them. Another company, Sony, and a group called Apollo might try to buy Paramount instead. This could mean big changes for the company.
Also, Paramount has a lot of debt, which means they owe a lot of money to other people. A magazine called Variety said the company’s money situation is not so good. Skydance is trying to make the deal more attractive by offering to pay off some of Paramount’s debts and give current stockholders more power in the new company.
An expert named Jim Woolery said that Bakish leaving the company could make things tricky for Paramount. He thinks the people who decide what happens next for the company will feel more pressure to make a good decision. Maybe they will talk to other companies who want to buy Paramount, like Sony and Apollo.
