Paramount co-CEO Chris McCarthy, George Cheeks and Brian Robbins will look very different once the Skydance-Paramount merger closes in late March and early April, sources unsurprisingly said. However, we hear that no decisions have been made yet on the comings and goings of McCarthy, Cheeks and Robbins.
A recent Bloomberg article today reported that of the three, only Cheeks will survive once new CEO and buyer Paramount, David Ellison, arrives. This is in addition to further consolidation of the conglomerate's television assets.
People familiar with the Skydance-Paramount merger tell us that Ellison has not yet had conversations with McCarthy and Robbins about their future under the new merger.
Chatter notes that Cheeks seemed well positioned to stay as he oversees the CBS division, which has minimal overlap with Skydance and which has been doing well, with the broadcast network this year adding new hits like Tracker, Matlock, Georgie and Mandy's first marriage Which offers strong reviews.
There have been questions about his relationship with Jeff Shiel, Ellison's incoming second-in-command, although sources have suggested the two are currently on good terms after ironing out any previous fractures. Cheeks resigned from NBCUniversal in early 2020 just weeks after Shell replaced Steve Burke as CEO of NBCU, following a sweeping restructuring that affected Cheeks' role at the company.
Some insiders believe Robbins, who works overseas for both Paramount Pictures and Nickelodeon, will leave, and was always supposed to, as Ellison plans to have Skydance production president Dana Goldberg take over the leadership of Paramount's film business. Sources tell us Robbins hasn't made any tough decisions about whether to stay or leave, but he's not without options including potential startups. During his tenure, the Film Department has achieved several number one films at the box office this year So, Bob Marley: One Love, and Smile 2as well as solid tent poles in The second wrestler and A Quiet Place: Day One In a year, the domestic box office grossed over $800 million.
McCarthy oversaw the world of Taylor Sheridan, who delivered a string of hits, including Tent Pole Yellowstone, 1923, Tulsa King, And recently lioness, Plus Paramount+ is renewing with Showtime with shows like the upcoming ones Ayman Reboot and Agency.
Ellison and Shell also met with Paramount division heads to evaluate the future, although no decisions were made.
Early in the deal process, people close to Gerard Cardinale's RedBird Capital firm pointed to the potential for multi-million savings in TV and streaming. Even beyond the half-billion dollars in savings already gained through cost-cutting and hundreds of layoffs by Paramount's current regime. Although its linear television business remains profitable, despite its decline, Paramount is cutting 15% of its employees in the United States, and cutting about 2,000 jobs before the end of this year.
Ellison's rumored plan is to consolidate all of the Paramount Television Networks, currently run by Cheeks and McCarthy, i.e. CBS, MTV, Comedy Central etc. into one division.
While the previous Donald Trump presidential administration served as an obstacle to the AT&T/WarnerMedia merger, sources say no hurdles are expected in the Skydance-Paramount merger once Trump resumes office.
“If Kamala Harris becomes president, we're going to have a problem,” one source close to the merger recently told Deadline about Democrats' tough stance on deals. The FCC has not approved the Paramount Skydance merger yet. Those who oppose the merger can submit petitions by December 16, with a final response due on January 13, according to Bloomberg.
Shari Redstone, who controls Paramount, put the trio in charge in a surprise move after former CEO Bob Bakish was ousted last summer as the two were not keeping tabs on the sale.
It is a bit impractical to have a fair amount of uncertainty between industry players and Wall Street insiders, but ultimately it will be for a limited time.
The months leading up to a merger announcement and closing are challenging times for companies, and keeping executives in place during the transition period is key. To that end, Paramount last month awarded each of three other $3 million grants, which, unusually, are valid whether or not they are Paramount executives or do some other job at the company. Barr had previously improved the trio's compensation in June to reflect their new roles. Cheeks, Robins and McCarthy would qualify for severance pay worth twice their base pay if ownership of the company changes hands — which it likely will, the SEC filing said. They can also continue to receive benefits for 24 months after they leave. During their time in the CEO's office, each is also eligible to receive an annual cash bonus of $2.75 million.
Last week, Paramount said human resources chiefs Nancy Phillips, executive vice president and chief people officer, and Doretha Lea, executive vice president of global public policy and government relations, are eligible for a $1 million bonus if they stay on until the deal closes.
The long-awaited merger is expected to close in the first half of next year, and most critics do not expect any particular regulatory hurdles in the new management.
Paramount representatives had no comment on the potential executive changes — which, in any case, would relate to the new Paramount company after the sale and would be outside their purview.
Ellison said artificial intelligence and technology will be central to the combined entity that works in part with Oracle, the software giant co-founded and run by his father, Larry Ellison.
Larry Ellison is Skydance's largest investor and will also be in the combined company, something some rivals were quick to point out. The company determined last month that David Ellison, not Larry, will have 100% control of the family's stake in Paramount when the deal closes. David Ellison recently hired former longtime Netflix executive Cindy Holland, someone with first-hand knowledge of using technology to grow and scale businesses with a technology mindset. She is expected to have a major role in the new merger, likely overseeing Paramount+.
Nellie Andreeva contributed to this report
