After rejecting Skydance’s offer to merge two weeks ago, Paramount Global’s new co-CEO troika, Brian Robbins, George Cheeks, and Chris McCarthy, addressed a packed company town hall at the studio’s Melrose Lot. This meeting marked the first detailed update since the annual shareholders meeting three weeks ago, focusing on cost-saving measures and strategic plans.
The Path Forward After Skydance Rejection
The decision to reject Skydance’s merger offer left many wondering about the future of Paramount. Robbins emphasized the challenging period and the disruptive nature speculation has caused. He added, We are here today to lay out a go-forward plan that can set us up for success no matter what path the company chooses to go down.
The trio revealed that bankers have been hired to explore the sale of certain Paramount-owned assets as part of their strategy to save half a billion dollars. Although Shari Redstone was not present at the meeting, her influence was palpable throughout the discussion.
Cost-Cutting Measures Amid Declining Profits
The candid town hall included discussions about job cuts aimed at eliminating duplicate roles. As McCarthy stated, a 61% decline in profits is simply unacceptable
, stressing that immediate actions are required to reverse this trend. Cost transformations are happening across various corporate functions including legal and corporate marketing.
Asset Sales and Debt Reduction
Cheeks reiterated the company’s plans to unload certain Paramount-owned assets. He mentioned they’ve already hired bankers to assist in this process with an aim to use proceeds for debt repayment and strengthening their balance sheet. McCarthy highlighted significant progress in international talks with potential partners that could reframe the scale and economics of Paramount+, making it profitable in the long term.
Acknowledging Efforts and Upcoming Projects
Former CEO Bob Bakish was acknowledged for his contributions during his tenure. The focus then shifted to upcoming releases like A Quiet Place: Day One, with high hopes for its performance at the box office.
Paramount Plus Price Hike Explained
The town hall also confirmed changes announced earlier at the shareholder meeting about a price hike for Paramount+ subscriptions. The basic plan will increase by $2, bringing it to $7.99/month for new subscribers. The Showtime tier will now cost $12.99/month.
Merging Paradigm and Strategic Partners
The executives reiterated that finding a strategic partner for Paramount+ remains a priority as they adapt to the changing landscape of linear declines in viewership. Continuing discussions with media and tech companies are aimed at establishing a co-owned structure that enhances their competitive edge against Netflix and Disney.
Missed Opportunities and Moving Forward
The discussions also shed light on unresolved issues from previous negotiations that led Shari Redstone to pull out at the last minute, impacting Paramount’s stock value significantly.
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