Paramount, a globally recognized film and television brand, is battling a rocky patch with a billion-dollar deal hanging in the balance.
During the media giant’s board elections, current majority shareholder Shari Redstone received the fewest votes of all hopefuls on the Paramount board.
Paramount board in disarray
Redstone received a staggering 905,000 votes against her standing to be a part of the Paramount decision-makers. This could be due to the current CEO displaying a series of annual cost-cutting exercises to $500 million annually and a horribly handled takeover deal.
Previous board members Dawn Ostroff, Nicole Seligman, Frederick Terrell, and Rob Klieger did not seek to be re-elected following the blase handling of the talks so far.
Redstone has been looking at the exit door for some time for her controlling stake but must meet certain business expectations to halt a nosedive. News of her poor performance in the voting this morning actually caused a share dip alongside the proposed heavy slicing of existing costs.
As we reported, Paramount is in the middle of a serious offer process that would see most of the services associated with the picture house change hands.
According to the deal’s insiders, Redstone, the controlling shareholder with 77% of the movie empire’s voting rights, has favored a deal with Skydance.
Despite looking like a solid deal for Redstone and National Amusements, the company that her family owns, Skydance dropped their offer. Later in the conversation, Skydance CEO David Ellison took his initial proposal of $2.5 billion and substantially lessened it.
The fallout was an unhappy Redstone, a fluctuating share price, and a faltering deal that potentially allowed other suitors to enter the fray. The movie and television powerhouse’s total share loss is 24.88% of its value over the last 52 weeks. This is a shocking statistic but makes sense for spectators as the company’s fire sale has dragged on.
Image: Ideogram.
