Four Paramount Board Members Step Down Amidst Skydance Merger Discussions

Paramount Global has confirmed that four executives will step down during the company’s annual meeting in June. These executives are Dawn Ostroff, Nicole Seligman, Frederick Terrell, and Rob Klieger.

The Hollywood Reporter reveals that Paramount has told its shareholders that Ostroff, Seligman, Terrell, and Klieger will not stand for reelection. This significant business move, which could alter the look of Paramount Global’s board of directors, will occur on June 4, but it has yet to be determined when the four executives will officially leave the company.

This move would reduce the company’s board to seven directors from 11. The remaining shareholders are Robert M. Bakish, Barbara M. Byrne, Linda M. Griego, Judith A. McHale, Charles E. Phillips Jr., Shari E. Redstone, and Susan Schuman.

CNBC reports that if the merger occurs, Skydance would own either a substantial minority stake or a majority stake in Paramount Global. According to the Financial Times, “David Ellison, who runs Skydance, has 30 days to reach a deal with the company controlled by Shari Redstone’s National Amusements.” The deal reportedly would involve Skydance first buying NAI and later merging with Paramount.

Paramount and Skydance have been trying to reach a deal to merge the two companies. CNBC reports that entering “exclusive talks” highlights a desire to finalize the deal between the two parties. 

If Paramount Global’s deal with Skydance does develop, this would be a concrete sign that the entertainment industry plans to consolidate and cut costs. A merger would help push for stronger streaming deals and profits after last year’s Hollywood strikes flatlined the industry for many months.

In early 2024, Apollo offered to buy Paramount for $26 billion. Apollo’s offer was rejected by Shari Redstone, who inherited control of Paramount Global from her late father, Sumner Redstone.

Paramount Global has many valuable media assets, including CBS, the Paramount Pictures studio, and its physical lot. The company also owns Comedy Central, Nickelodeon, Pluto TV, and Paramount+ cable networks.

The proxy filing reveals that a complete list of stockholders is entitled to vote for at least 10 days before the shareholders’ annual meeting.