The Paramount co-CEO threesome of Chris McCarthy, George Cheeks and Brian Robbins is apt to look quite different once the Skydance-Paramount merger goes through in late March-early April, according to sources ad not surprisingly. However, we hear that no decisions have been made yet on the comings and goings of McCarthy, Cheeks and Robbins.
A Bloomberg article today reported that of the three, only Cheeks is bound to survive once incoming CEO and Paramount buyer David Ellison arrives. This in addition to further consolidation of the conglom’s TV assets.
Those familiar with the Skydance-Paramount merger tell us that Ellison hasn’t had talks yet with McCarthy and Robbins about their future under the new merger.
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Chatter indicates that Cheeks looked well positioned to stay on as he oversees the division, CBS, that has the least overlap with Skydance and one that has been doing well, with the broadcast network this year adding new hits like Tracker, Matlock and Georgie & Mandy’s First Marriage which are delivering strong ratings.
There had been questions about his relationship with Ellison’s incoming No. 2 Jeff Shell though sources have indicated that the two are currently on good terms after smoothing over any past fractures. Cheeks resigned from NBCUniversal in early 2020 just weeks after Shell replaced Steve Burke as NBCU CEO, following a sweeping restructuring that impacted Cheeks’ role at the company.
Some insiders believe Robbins, who overseas both Paramount Pictures and Nickelodeon, will be departing and was always meant to as Ellison is planning to have Skydance Head of Production Dana Goldberg lead Paramount’s film business. Sources tell us that Robbins hasn’t made any hard decisions about staying or going, but he’s not without options including potential start-ups. The film division under his tenure has generated several No. 1 box office hits this year in If, Bob Marley: One Love, and Smile 2, as well as solid tentpoles in Gladiator II and A Quiet Place: Day One in a domestic box office year bound for $800M-plus.
McCarthy has overseen the Taylor Sheridan universe, which has delivered a string of hits, including tentpole Yellowstone, 1923, Tulsa King, and, most recently Lioness, as well as the revamp of Paramount+ with Showtime with shows like the upcoming Dexter reboot and The Agency.
Ellison and Shell have also been meeting with Paramount department heads to assess the future, even though no decisions have been made.
From early in the deal process people close to Gerard Cardinale’s RedBird Capital had indicated the potential for many millions in savings in TV and streaming. Even beyond the half billion in savings already taken out with cost cuts and hundreds of layoffs by the current Paramount regime. With its linear TV business still profitable, though declining, Paramount is slashing 15% of its U.S. staff, pink-slipping around 2,000 positions before the end of this year.
Ellison’s rumored plan is to combine all the Paramount TV networks, currently run by Cheeks and McCarthy, i.e. CBS, MTV, Comedy Central etc. into one division.
While the previous Donald Trump presidential administration was a hurdle for the AT&T/WarnerMedia merger, sources says there aren’t any monkey-wrenches expected for Skydance-Paramount merger once Trump resumes office.
“If Kamala Harris became President, then we’d have a problem,” one source close to the merger told Deadline recently about the Democrats’ tough stance on deals. The Federal Communications Commission hasn’t OK’d the Paramount Skydance merger yet. Those opposing the merger can petitions by Dec. 16 with final response due Jan. 13, according to Bloomberg.
Shari Redstone, who controls Paramount, put the triumvirate in charge in a surprise move after ousting former CEO Bob Bakish last summer as the two weren’t seeing eye on the sale process.
It’s a bit unwieldy there was a fair bit of skepticism among industry players and Wall Streeters, but in the end it’s for a limited time.
The months before a merger is announced and closes are difficult times at companies and keeping executives in place during the transition is key. To that end Paramount last month awarded each of the three another $3 million worth of stock grants that, unusually, are valid whether or not they are CEOs at Paramount or doing some other job at the company. Par had previously sweetened the trio’s compensation in June to reflect their new roles. That SEC filing said Cheeks, Robbins and McCarthy would qualify for a severance payment of twice their base pay in if the company changes hands – which it likely will. They also can continue to receive benefits for 24 months after their departures. For the period they serve in the Office of the CEO, each also is eligible for an annual cash bonus of $2.75 million.
Last week, Paramount said HR head Nancy Phillips, EVP, Chief People Officer, And Doretha Lea, EVP, Global Public Policy and Government Relations, are both eligible for a $1 million bonus if they remain until the deal closes.
The very long anticipated merger is expected to close in the first half of next year and most pundits don’t expect any particular regulatory hurdles in the new administration.
Paramount reps had no comment on possible executive changes — which would, in any case, concern the new Paramount post-sale and be outside of their purview.
Ellison has said AI and tech will be key to the merged entity working in part with Oracle, the software giant co-founded and run by his father Larry Ellison.
Larry Ellison is the biggest investor in Skydance and will be as well in the merged company, which some rivals have been quick to point out. The company specified last month that David Ellison will have 100% control of the family’s Paramount interest when the deal closes, not Larry. David Ellison recently hired former longtime Netflix executive Cindy Holland, someone with firsthand knowledge of using technology to grow and scale a business with a tech mentality. She is expected to have a big role in the new merger, likely overseeing Paramount+.
Nellie Andreeva contributed to this report.
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