Paramount CEO Bob Bakish out amid Skydance merger talks

Paramount Global chief Bob Bakish has left the entertainment giant after eight years at the helm, the company announced Monday.

The company said in a press release Bakish is stepping down from his role as CEO and from the board of directors.

Bakish’s departure comes as the board is pursuing a sale of the company to Skydance Media. Sources told FOX Business that Bakish clashed with non-executive chair Shari Redstone over the terms of the deal which were unfavorable for common shareholders, per reports. 

Paramount was formed following the combination of CBSViacom. 

 Shari Redstone attends Paramount Pictures & DreamWorks Pictures host the premiere of “Ghost in the Shell” at AMC Lincoln Square Theater on March 29, 2017 in New York City. (Jared Siskin/Patrick McMullan via Getty Images / Getty Images)

Her father, Sumner Redstone, built the company’s media empire, which began as National Amusements in Massachusetts, which made his family billionaires. He was also considered one of the most influential media titans of his time. 

Viacom Inc. chmn. Sumner Redstone in office w. paraphernalia fr. various co. divisions, incl. plastic blimp bearing Nickelodeon cable TV station logo. (Photo by Mario Ruiz/The LIFE Images Collection via Getty Images/Getty Images) (Mario Ruiz/The LIFE Images Collection via Getty Images/Getty Images) / Getty Images)

Shares of Paramount have lost 17% this year, underperforming the S&P 500’s 7% rise and trailing the likes of rival Disney whose shares are up 24% over the same time period. 

Paramount said Bakish will be replaced with a newly-established Office of the CEO led by a trio of three senior executives: CBS president and CEO George Cheeks; Showtime/MTV Entertainment Studios and Paramount Media Networks president and CEO Chris McCarthy; and Paramount Pictures and Nickelodeon president and CEO Brian Robbins.

CEO of Viacom Robert M. Bakish and Sherri Redstone attend as ViacomCBS Inc. rings the opening bell at NASDAQ on December 05, 2019 in New York City. (John Lamparski/Getty Images / Getty Images)

“The Board and I thank Bob for his many contributions over his long career, including in the formation of the combined company as well as his successful efforts to rebuild the great culture Paramount has long been known for,” Ms. Redstone said in a statement accompanying the announcement of Bakish’s departure. “We wish him all the best.”

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FOX Business’ Charles Gasparino contributed to this report.