Paramount's Leadership Team Unveils Restructuring Plans

(RTTNews) - Paramount's leadership team, known as Office of the CEO, has laid out a strategic plan to fuel profitability and reduce $14.6 billion long-term debt.

The Office of the CEO, comprises of CBS CEO George Cheeks, Paramount Media Networks CEO Chris McCarthy and Paramount Pictures CEO Brian Robbins. It was formed after the resignation of former CEO Bob Bakish in April.

The newly revealed plan focuses on exploring joint venture opportunities with other media companies, reducing $500 million in non-content costs, and divesting assets.

"Our plan looks forward by building back the best of Paramount, delivering higher revenue with lower costs, which translates to higher earnings and better returns," Robbins claimed. "We will be thoughtful in how we deploy capital, with our world class content always being the first priority. That's the way we can maximize shareholder value and return Paramount to delivering consistent earnings growth."

The presentation comes as the entertainment giant has agreed to merger terms with David Ellison's Skydance Media and private equity firms RedBird Capital and KKR. However, the merger will be finalized only after receiving approval from Paramount's controlling shareholder, Shari Redstone.

Redstone, who controls 77 percent of Paramount's voting share, is also considering a deal with Sony Pictures Entertainment and Apollo Global Management, who submitted a joint, non-binding $26 billion cash deal for Paramount.

Notably, the leadership team's plan will be implemented only if the entertainment company fails to secure any deal with either media companies.