Jun 4, 2024 - Business

Paramount mulls streaming joint venture, job cuts as merger talks loom

Sara Fischer

Paramount's trio of co-CEOs laid out a transformation plan for the company Tuesday that includes exploring a joint venture or long-term strategic partnership to grow Paramount+.

Why it matters: Paramount's plans come as it nears a merger with Skydance Media and as its streaming business remains unprofitable, with analysts saying it lacks the scale necessary to compete.

The big picture: The changes, laid out at the company's annual meeting, are part of a broader effort to streamline the business.

The plan is to focus on making the company more nimble and efficient by clamping down on noncontent-related costs.
More cost-cutting measures are expected to follow after the initial near-term changes.
The management team identified $500 million in near-term cost reductions, including job cuts.

Zoom in: The CEOs laid out a plan to bolster revenue by licensing more of Paramount's content to other platforms.

The company also plans to divest some of its businesses to help pay down its debt.

Zoom out: The "Office of the CEO" team was named in April after longtime CEO Bob Bakish stepped down following reports of his resistance to the Skydance deal.

What to watch: Skydance submitted a revised offer for Paramount that includes the option for some nonvoting shareholders to cash out at $15 per share.

That offer has been approved by Paramount's board and now sits in controlling shareholder Shari Redstone's hands.

Editor's note: This story has been corrected to reflect that Bob Bakish stepped down and the new leadership team was named in April (not May).

Add Axios on Google

Paramount mulls streaming joint venture, job cuts as merger talks loom

What to read next