Paramount Global nominated three new directors on Monday, June 2, seeking to boost its board strength to seven as it awaits regulatory approval for its $8.4 billion merger with Skydance Media.
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| Paramount Global and Skydance logos are seen in this illustration taken December 17, 2024. REUTERS/Dado Ruvic/Illustration/File Photo |
Paramount nominated Mary Boies, counsel to Boies Schiller Flexner LLP, Charles Ryan, co-founder and general partner of Almaz Capital, and Roanne Sragow Licht, former justice and adjunct professor at Boston University and Roger Williams University.
U.S. President Donald Trump filed a $10 billion lawsuit against Paramount-owned CBS News in October, alleging that the network deceptively edited an interview with then-vice president and presidential candidate Kamala Harris, to "tip the scales in favor of the Democratic Party" in the election.
Trump's lawsuit is seen as a major roadblock to the Paramount-Skydance merger, according to some analysts.
The merger, which is slated to be completed by the first half of 2025, requires approval from the U.S. Federal Communications Commission (FCC), which has authority over the transaction because it needs to approve the transfer of the broadcast television licenses held by CBS.
Paramount, chaired by Shari Redstone, reportedly offered $15 million to settle the suit, however, in a letter sent on Friday, May 30 to former 60 Minutes Executive Producer Bill Owens and ex-CBS News and Stations boss Wendy McMahon, plus the Paramount Global board and the state Attorney General, the heads of the Senate Energy, Utilities & Communications Committee and the Senate Judiciary Committee in Sacramento, California, Senators Josh Becker and Thomas J. Umberg have began an investigation to see if Golden State bribery and unfair competition laws are about to be violated.
Trump raised his claim for damages to $20 billion in February.
The Wall Street Journal reported last week that the company wanted to ensure it had a full board in place in case its negotiations with Trump to settle his lawsuit fell through.
Paramount is scheduled to hold its annual stockholder meeting on Wednesday, July 2.
In additional Paramount news, in a move that blindsided many staffers, Paramount has fired its longtime media agency of record in a cost-saving move as its proposed merger with Skydance Media continues to gestate.
The abrupt change comes as Skydance and its private equity backer RedBird Capital are waiting in the wings to take control of Paramount, pending government approval of the $8 billion deal. Precisely who drove the ad agency decision is a matter of some dispute, according to sources, but Paramount’s relationship with agencies primarily resides with John Halley, president of Paramount Advertising. On the sell-side, Paramount does business with agencies across its networks and streaming services and the opportunity apparently presented itself to create more favorable economics via a buy-side shift of agencies.
WPP Media, formerly known as GroupM before a recent rebrand, had worked with Paramount Pictures for more than two decades, dating back to when the studio was part of Viacom. Three sources familiar with the situation told Deadline that the agency was dismissed and replaced by Publicis, another of the large agency players. The switch, which was not preceded by the customary review period (when an incumbent has a chance to retain the business), will result in significant cost savings and has been characterized as a business decision. Executives relayed the news selectively inside Paramount and to some people externally last Friday and word has spread quickly in subsequent days.
Total annual billings from Paramount, spanning international ads for Paramount+ (Horizon Media handles the streamer domestically) as well as global campaigns for films like the latest Mission: Impossible installment, are in the range of $600 million, according to people with knowledge of the numbers.
It wasn’t immediately clear how much of a savings would be created by the move, and sources indicated that other factors like buying and planning strategy and account personnel were also considered in terms of workflow and strategy. Feedback about WPP from a range of Paramount employees, from directors to SVPs and EVPs had been generally positive in recent months. And unlike creative marketing teams, trailer vendors or others involved in campaigns, media agencies are usually not in the direct line of fire if corporate leadership wants to respond to box office or ratings results.
Horizon’s work on domestic Paramount+ is another question, with rumors circulating that it had moved to IPG in parallel with the larger move. Those agencies did not immediately respond to Deadline’s request for comment.
Publicis also did not respond to a request for comment. Reps from Paramount Global, Paramount Advertising, Skydance and WPP Media declined to comment when contacted by Deadline.
The merger of Skydance and Paramount, which seemed a sure bet at the start of the year, has entered murkier territory thanks in large part to President Donald Trump’s animus toward CBS News.
Sentiment on the Paramount lot, Deadline has learned, has moved from the agonizingly slow crawl of the merger process and more about the abrupt changing of the guard with a longtime third-party vendor. The notion of swapping out an agency of record without warning is virtually unheard of on Madison Avenue. While clients are more antsy than ever and have jumped agencies in an effort to save money, gain efficiencies or for other reasons, the transition usually follows a more orderly and deliberate path.
Halley oversees the sell-side efforts at Paramount but also the outward promotion of the company’s films, series, streaming and other wares and its relationships with agencies. Since ascending to the No. 1 role in 2022, he has shown a willingness to buck convention, as with his conviction about ending decades of tradition by discontinuing the company’s traditional big-stage upfront presentation every spring. In place of the splashy show, the company convenes a number of smaller agency-focused dinners with talent in New York, Los Angeles and Chicago.
Skydance, along with RedBird, sealed its merger proposal with Paramount controlling shareholder National Amusements last July and remained in pole position after a 45-day “go-shop” period expired. Mindful of legal restrictions against “gun-jumping” by parties involved in corporate mergers, Skydance has maintained a fairly low profile as the review has unfolded. (CEO David Ellison, for example, was not a public presence at last month’s Cannes Film Festival despite Mission: Impossible – The Final Reckoning having its world premiere there.)
On a matter as consequential as the change of agency, sources indicated to Deadline, Skydance and RedBird could well have been consulted about the switch under the terms of the merger agreement.
The merger does not require approval from shareholders given that Shari Redstone and her family control a large majority of the company’s shares.
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