Paramount Global’s current leadership, consisting of CBS CEO George Cheeks, Paramount Media Networks CEO Chris McCarthy, and Paramount Pictures CEO Brian Robbins, recently unveiled a plan at the company’s annual shareholder meeting. This plan outlines strategic priorities, which include exploring joint venture opportunities in the streaming industry with other media companies, cutting costs by $500 million, and divesting noncore assets.
While Paramount had previously agreed to merger terms with a consortium led by David Ellison’s Skydance Media and private equity firms RedBird Capital and KKR, the deal is awaiting approval from Paramount’s controlling shareholder, Shari Redstone. Redstone, who owns 77% of Class A Paramount shares through National Amusements, is currently deliberating whether to proceed with the sale or consider the alternative plan presented by the company’s “Office of the CEO.”
The strategies outlined by the Office of the CEO are designed to address Paramount’s high debt levels and restore the company to an investment-grade rating. Paramount’s credit rating was downgraded to junk status earlier this year, primarily due to its substantial long-term debt of $14.6 billion as of March 31. By focusing on lowering debt and improving financial stability, Paramount aims to regain investor confidence.
During the presentation, the executives emphasized the importance of growing content and franchises while also prioritizing cost-cutting measures. CEO Brian Robbins highlighted the company’s commitment to deploying capital strategically, with a focus on investing in world-class content. Similarly, CEO George Cheeks emphasized the need for swift cost reductions, particularly in areas such as duplicative teams, real estate, and marketing.
Paramount is actively exploring partnerships with other streaming services to capitalize on the growing demand for digital content. CEO Brian Robbins mentioned that the company has received significant interest from potential partners for joint ventures involving Paramount+, the company’s flagship streaming service. This deep collaboration aims to leverage Paramount’s content library and expand its reach in the competitive streaming market.
In addition to cost-saving measures and strategic partnerships, Paramount is considering divesting noncore assets to streamline its operations. CEO Chris McCarthy indicated that the company is evaluating various options to optimize its asset portfolio and generate proceeds for debt repayment. Through a combination of cost reductions, asset divestments, and strategic partnerships, Paramount aims to position itself for long-term success in the evolving media landscape.