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Paramount's leadership team, known as Office of the CEO, has laid out a strategic plan to fuel profitability and reduce $14.6 billion long-term debt. The Office of the CEO comprises of CBS CEO George Cheeks, Paramount Media Networks CEO Chris McCarthy and Paramount Pictures CEO Brian Robbins. It was formed after the resignation of former CEO Bob Bakish in April. The newly revealed plan focuses on exploring joint venture opportunities with other media companies, reducing $500 million in non-content costs, and divesting assets. "Our plan looks forward by building back the best of Paramount, delivering higher revenue with lower costs, which translates to higher earnings and better returns," Robbins claimed. "We will be thoughtful in how we deploy capital, with our world class content always being the first priority. That's the way we can maximize shareholder value and return Paramount to delivering consistent earnings growth." read more....👇 #rttnews #rttnewsbusinessupdates #paramountskydancedeal #paramounttakeoverdeals #paramountacquisitiondeals #paramountrestructuringplan #bobbakish #shariredstone #chrismccarthy #georgecheeks

In Memoriam: Gerald M. Levin - Former Time Warner Chairman As we reflect across the digital expanse to honor Jerry, I am reminded of the profound impact he has had on my life and the lives of many others. For over twenty years, Jerry was not just a friend but a mentor whose wisdom and guidance helped shape the trajectory of my career and personal growth. Jerry's visionary spirit was exemplified in his work, most notably in the pioneering AOL/Time Warner merger. It was a move that, while controversial, was undeniably ahead of its time—setting a blueprint for the multimedia conglomerates that would follow. Bob Iger and Disney has certainly followed this model. His foresight laid the groundwork for industry giants and served as a template for successful mergers in the modern era. From the depths of housing projects to the heights of the tech industry, Jerry's influence was a beacon that guided me through the most challenging situations. His legacy is not just in the deals he made or the companies he built, but in the lives he touched and the paths he illuminated. As a tech CEO who has witnessed the evolution of our industry, I can attest to the revolutionary nature of Jerry's endeavors. The environment may not have been ready then, but today we see the wisdom in his vision. Jerry's contribution to multimedia and entertainment is immeasurable, and it is our duty to ensure that this is the legacy he leaves behind—a legacy of innovation, courage, and unwavering belief in the future. We will miss you Jerry deeply, but your visionary legacy will continue to inspire us all. Erik #timewarner #hbo #jerrylevin #aol #cnn #tnt #tbs #warnerbros #timemagazine #vurbil #merger #technology #multimedia #bobiger #disney

NEWS AND INFORMATION SONY PICTURES CEO PREDICTS INDUSTRY 'CHAOS' OVER THE NEXT 2 YEARS: 'MERGERS AND BANKRUPTCIES AND SALES' (By Tony Maglio) If you think the Paramount-Skydance drama was a bit much, you’re going to hate the next couple of years, Sony Pictures Entertainment CEO Tony Vinciquerra warned on Thursday. At the annual Bank of America Media, Communications & Entertainment Conference, Vinciquerra said Hollywood is in for “chaos” over the next two years. He predicted the industry is in for a wave of “mergers and bankruptcies and sales and all kinds of fun things,” and that only the biggest companies will survive. Unless, that is, those giants “make some massive mistake or miscalculation” along the way. “The business […] will be in a period of chaos for the next 18 to 24 months,” Vinciquerra said. “Just look at all the companies with cable networks that have this albatross of cable networks around their necks that they have to figure out what to do with.” Easy for him to say: SPE doesn’t have much in terms of cable-channel ownership. It does, however, provide an enormous amount of content to other companies’ broadcast and cable channels (and yes, streaming). That positioning is where Vinciquerra is, wants to be, and will stay. His peers at Warner Bros. Discovery and Paramount Global, meanwhile, can feel the albatross’s talons tightening. Both companies just devalued their respective cable businesses by billions of dollars, have stocks that are in the toilet, and are ripe for the picking. To read the entire article, click on the below link: https://lnkd.in/guGpbjbG — #entertainmentnews #entertainmentindustry #streamingservice #cablechannels

🔷 Warner Bros. Discovery Shakeup 🔷 Last week it was Paramount Pictures that captured headlines with the Skydance merger, marking the end of the Redstone era. This week, Warner Bros. Discovery is in the news for plans to spin-off its movie studio and Max streaming service. Earlier in the week media analyst, Jessica Reif Erlich, begged the company to do something to reverse the downward trajectory. The stock has dropped 70%📉 since the merger of the two companies in early 2022 and Deadline Hollywood reported another round of layoffs at Warner Bros. Discovery. While rumors of the spinoffs helped the stock tick 2 percentage points, this is just temporary optimism. The Hollywood era studios are continuing to feel the hurt from this brave new world of streaming. Consumers are fatigued by the abundance of streaming services. These are companies we love, but while Netflix and YouTube were looking to the future, the old guard was reluctant to shift away from the models that had worked for decades. 📣 POV: Unfortunately, there are still too many streaming services and we'll continue to see disruption and consolidation in this space. Let's not forget that the hard working people at these companies are impacted the most by this turbulence. Cutting costs is a short-term tactical move, not a strategy. Cited Sources: https://lnkd.in/er_FH7WE https://lnkd.in/e6dFfyT9 #WarnerBros #WarnerBrosDiscovery #Media #Mergers #Aquisitions #Streaming #Advertising #Video

https://lnkd.in/enzCP2D8 This is another big reason why the backdoor approach of mergers and acquisitions to create the appearance of profitability to get capital investment in film/TV doesn't inspire confidence in me. This process will always result in layoffs. This can be as "simple" as redundancies in positions. But Paramount is not laying off 2,000 people because of redundancies. M&A often means there's debts that need paying off, and a big contraction can help pay those off. How a company looks on the books going into a buy or a merger is also critical, with a goal of making it look as profitable as possible. In the case of Paramount, these layoffs give them a "$300 million-$400 million restructuring charge." But the most direct reason is, whoever is coming in brings their own philosophy. There are services and products they no longer want to provide, as they drill into whatever has made bank before. There's currently a stand-off between several massive entertainment companies about potential mega-mergers, and they're talked about as hopes for the industry at large. The status quo isn't good, but I'm not clasping my hands together hoping for any more of these to save us.

Warner Bros. Discovery's decision to lay off nearly 1,000 employees amid financial turmoil is a glaring example of corporate shortsightedness. In an era where innovation and agility are paramount, why are media conglomerates still resorting to layoffs as a primary solution to their problems? David Zaslav's approach of cutting jobs and considering asset sales reflects a troubling trend in the industry: sacrificing human capital to appease shareholders. What happened to investing in talent and technology to drive growth? The analyst's call for strategic alternatives, including spinning off CNN or merging with other streamers, highlights the desperate measures being considered to salvage a faltering business model. Is this the new normal for media giants? Chopping jobs and selling off prized assets while ignoring the root causes of decline - outdated business models and a lack of innovation. It's time for a paradigm shift. Media companies must prioritize sustainable growth strategies over quick fixes. The future of the industry depends on it. Let's start a conversation: Should media companies invest more in innovation and talent rather than resorting to layoffs? How can they balance financial stability with sustainable growth? #MediaIndustry #CorporateStrategy #Innovation #Layoffs #BusinessTransformation

Will a new type of 'media mogul' like David Ellison make Paramount fit? We now see the Paramount & Skydance merger really happening, driven by the belief that only the largest players will survive. With David Ellison at the helmet of the combined enterprise, a new kind of leadership comes in: more bold, more tech-savvy, yet also very much in love with movies, good story-telling and appreciative of the creative part of the business. We witness in front of us the scenario that has been depicted in endless Hollywood movies and TV series last couple of years, where a tech scion wants to make it big in entertainment because he has a childhood trauma to overcome involving usually a cartoon hero - and usually fails. But this time it might be different. This time, this very Tech Scion is maybe exactly what an old media moguldom like Paramount needs - and his deep pockets will help with that. Lets briefly look at the typical rationale behind this growth strategy of merger & acquisitions. What are the main drivers? Synergies: Mergers often combine complementary strengths, leading to increased efficiency and innovation. Economies of scale: Larger companies can negotiate better deals with suppliers and distributors, reducing costs. Increased market power: This can lead to higher advertising rates and stronger bargaining power with platforms. Today, one important element is to be added when it comes to media (especially old school media like movie and tv making): you need to merge content with technology. The TV business is now first and foremost a data and technology business. David Ellison brings this tech mind and approach now to Paramount. Will a single person be able to turnaround a mega ship like an old studio? We will see. I am in general sceptical of any 'moguldom', but in this case, I see a good chance that this is maybe exactly the kind of 'boot camp' that is required to make a business like Paramount fit for the future. Because, the future in media belongs not necessarily to the biggest entity but also to the one that is the fittest. Being big, and having a lot of money, helps thought, too ;-) #media #paramount #skydance #merger #tvindustry #tvstrategy

https://lnkd.in/eW6ZQzx9 Seeing this while 2 months ago there were articles about a division of Sony laying off 900 or so of their staff is a common practice when an acquisition or merger is in a companies sights. I've experienced situations of this type in the past 9 years. - An attempted acquisition resulting in layoffs, abrupt job structure changes, and employees being forced to do multiple jobs without a pay increase, or perish, causing people to quit as well - An acquisition, then a sale back to one of the original owners, then massive layoffs - Starting a position the first day an acquisition was announced, followed by leaving to another company with the thoughts that the company was going through another acquisition process and being correct about it Companies layoff employees because it frees up money for visibility purposes. While the current remaining staff is working 3x as hard. Once the company acquires, or gets acquired, positions are then fizzled out. Between this and private equity firms buying business and selling to the highest bidder, the idea of job security in the tech industry or tech adjacent industry is about as false as a $3 bill. I feel for the thousands of employees that are on the receiving end of layoffs and terminations every year because of capitalism, and the need for companies to buy other companies and become even more giant just to compete with others. It's an unfortunate part of the world we live in, but we have to live in it. I've seen enough writings on the wall to know the world where working somewhere for 20 years then retiring is not a realistic idea in todays market. I'm still optimistic that I will find a place where it could possibly be. I'll keep looking.

Leadership Shift at Paramount Global Amid Merger Talks Big changes are happening at Paramount Global! Bob Bakish, the CEO who has been at the helm through significant transformations since 2016, is stepping down. This move comes amid ongoing merger discussions with Skydance Media, signaling a new era for the entertainment giant. As we bid farewell to Bakish, Paramount introduces an "Office of the CEO," a novel leadership structure shared among three seasoned executives. This strategic pivot aims to maintain stability and drive growth during this critical transition period. Additionally, Skydance Media, under David Ellison, has proposed a significant investment of $3 billion to support this potential merger, promising to strengthen Paramount's financial footing and stock value. What does this mean for the industry? As merger talks continue, the landscape of entertainment and media may be poised for a profound transformation. Paramount's recent performance, highlighted by strong Q1 earnings, positions it as a formidable player in the evolving market. Stay tuned as this story develops and Paramount charts its course through these changes. #ParamountGlobal #Media #Leadership #MergerTalks #EntertainmentIndustry #linkedinnews