Paramount+ Adds 3.7 Million Customers in Q1 2024 to Hit 71.2 Million; Bob Bakish Officially Out as CEO
Three Paramount executives will take Bakish’s place until the question of Paramount’s ownership is determined.
It has been a tumultuous few months for Paramount Global as the venerated entertainment company has been regularly embroiled in rumors surrounding its ownership and, more recently, who will be in charge of the company. On Monday, some of those questions were answered as Paramount reported its first-quarter earnings for 2024. On the streaming front, the company’s flagship platform Paramount+ added 3.7 million customers worldwide during the first three months of the year to bring its global total to 71.2 million, up 18.67% year over year.
Key Details:
- Paramount+ saw 18.67% subscriber growth over the course of the past year.
- The streamer also boasted a 51% revenue jump year over year as well.
- CEO Bob Bakish stepped down from his post on Monday effective immediately and he will be replaced by a trio of executives while Paramount’s ownership is decided.
In addition to the subscriber growth, Paramount+ saw an increase of 51% in revenue as well. However, it wasn’t all good news for Paramount streaming during Q1 as in February, Paramount announced that it would be shutting down its children’s educational streaming Noggin. At the time it was presumed that the move was part of cost-cutting from CEO Bob Bakish to make the company more attractive for a potential acquisition.
While discussions for Paramount to merge with another company are still ongoing, Bakish will not be a part of those plans, as he officially resigned on Monday. While no full-time CEO will be named until the ownership question is answered, in the interim, Bakish will be replaced by CBS CEO George Cheeks, Showtime and MTV Entertainment CEO Chris McCarthy, and Paramount Pictures and Nickelodeon CEO Brian Robbins.
“Paramount Global includes exceptional assets and we believe strongly in the future value creation potential of the Company. I have tremendous confidence in George, Chris and Brian,” Paramount’s controlling shareholder Shari Redstone said. “They have both the ability to develop and execute on a new strategic plan and to work together as true partners. I am extremely excited for what their combined leadership means for Paramount Global and for the opportunities that lie ahead.”
What Happened to Former Paramount Global CEO Bob Bakish?
On Friday, word began to leak out that CEO Bob Bakish might be on his way out at Paramount Global. If the negotiations with Skydance were successful, it was always the plan for Ellison to bring in his own executives to run the company, primarily former NBCUniversal CEO Jeff Shell.
However, there is no deal done between the two sides, and yet Backish has resigned his position anyway. It was reported over the weekend that this move was coming and it seems like it is due to a mix of corporate politics and Bakish’s statements behind closed doors.
Like a number of significant shareholders, Bakish has reportedly voiced his concerns over the potential deal with Skydance as it initially was set to compensate primary shareholder Shari Redstone at a much higher level than everyone else. Coupled with the fact that Bakish reportedly negotiated with Comcast to potentially bundle the companies’ streamers Peacock and Paramount+ without fully consulting the Paramount board apparently hastened the move.
How Did Paramount Global and Skydance Media Get So Close to a Merger?
The financial situation at Paramount has been less than ideal for a while, so much so that late last year, some analysts were concerned that the company might have to declare bankruptcy because it couldn’t make its rights payments to the NFL. As nearly all media stocks — especially those that generate a substantial portion of their revenue from linear television channels — have seen their share prices on a nearly perpetual decline since the pandemic, Paramount has been especially hard hit. So much so that late last year, whispers began to circulate that the company could be up for sale.
While talks between Warner Bros. Discovery and Paramount eventually faded as the former ‘couldn't afford to make the acquisition, in January, reports began to pop up that multiple billionaires and investment firms were interested in acquiring the controlling share of Paramount Global. David Ellison’s Skydance Media was the first to reportedly make an offer, with Byron Allen making his interest known soon after. Then, it was private equity firm Apollo Management who came in with an offer well over the company's market value.
However, as Apollo’s offer would likely lead to Paramount Global being broken up, Redstone and the committee assembled to evaluate M&A opportunities prioritized the Skydance offer, entering into 30 days of exclusive negotiations approaching one month ago. While Redstone owns over 70% of Paramount Global, other large investors have not been supportive of the potential deal, even going as far as to threaten legal action.
To mollify concerns, Skydance has modified its position a number of times, including plans to take the company private. Now, Ellison plans to keep Paramount Globa's stock public, and his company will make its offer to minority Paramount stock holders more attractive in a “best and last” offer.
The assumption is that Skydance — the production company behind a number of Paramount hits like “Top Gun: Maverick” and the Mission: Impossible franchise — will keep the majority of Paramount Global’s assets under the same umbrella, which is what Redstone wants most.
Paramount Plus
Paramount+ is a subscription video streaming service that includes on-demand access to 40,000+ TV show episodes from BET, CBS, Comedy Central, MTV, Nickelodeon, Nick Jr. and more. The lineup includes “1883,” “Tulsa King,” “Star Trek: Discovery,” Nickelodeon’s “SpongeBob SquarePants,” and “PAW Patrol.” Subscribers can watch the NFL, college football, The Masters, college basketball, UEFA Champions League, UEFA Europa, Serie A, and NWSL. The service also offers the option to watch your live CBS affiliate. The upgraded ad-free package includes premium movies and shows from Showtime.