Paramount Global Non-Exec Chair Shari Redstone Touts Office Of CEO During Annual Shareholder Meeting

Michael M. Santiago/Getty Images

Shari Redstone, Paramount Global‘s non-executive chair and controlling shareholder, sought to sell shareholders at the company’s annual meeting Tuesday on the potential of the three-member Office of the CEO.

Convening a video presentation produced like a TV morning show, she delivered brief remarks before tossing to George Cheeks, Chris McCarthy and Brian Robbins. The three execs have formed the Office of the CEO since the ouster of Bob Bakish in April. Hovering over the event, though only briefly alluded to, is a pending merger proposal by Skydance Media, which will transform Paramount yet again if it is finalized.

“Reducing our costs to be consistent with industry standards” is a key strategic objective, Redstone said. “This will then enable us to decrease debt, strengthen our balance sheet and continue to invest in the best-in-class content that has always been at our core. And overall, it would allow us to service our most important goal: driving revenue for all of our shareholders. Our confidence in the office of the CEO stems from what this team has been able to accomplish with a reduced budget over the last several years.”

Robbins, President & CEO of Paramount Pictures and Nickelodeon; Cheeks, President & CEO of CBS; and Chris McCarthy, President & CEO Showtime/MTV Entertainment Studios and Paramount Media Networks are “experienced, respected leaders within our company and our industry,” Redstone said. While the structure of the office, having three execs replacing one, is unorthodox, she acknowledged, Robbins, Cheeks and McCarthy “have been behind our biggest successes for years.”

Most of the presentation consisted of highlighting Paramount’s portfolio and success stories across film, TV and streaming. Cheeks said the larger strategy rests on three main pillars: transforming streaming, streamlining the organization and optimize the company’s asset mix. He added that the company is targeting $500 million in annual cost savings, with “much more to come.”

The execs said the company would pursue both asset sales and strategic partnerships in streaming in pursuit of the goal of driving better financial results.

“We’re working on exploring our options with both SVOD players and the leading technology platforms, with the goal of forming a joint venture or a long-term strategic partnership,” McCarthy said. “Let me be clear: I’m not talking about marketing bundles. Rather, this is a deep and expansive relationship, one that would make the most of our hit content while improving the customer offering.”

Reduced churn and expenses would result from such a tie-up, the exec added, and “we’ve already had plenty of inbound interest” from potential partners.