Streaming competition intensifies, leading to job cuts at Paramount
Rich Greenfield, a partner at LightShed Ventures, weighs in on Donald Trump's accusations of deceptive editing by CBS' '60 Minutes' during an interview with Kamala Harris on 'The Claman Countdown.'
Meanwhile, Paramount Global is riding a wave of cost-cutting, chopping off 3.5% of its U.S. workforce. The slim-down strategy was announced by the company's triumvirate of co-CEOs in a memo shared with FOX Business.
These top guns—George Cheeks, Chris McCarthy, and Brian Robbins—explained that Paramount was taking "hard but necessary steps" to streamline their organization, a move that'll shove 3.5% of U.S. employees out the door according to the memo.
As Paramount sheds workers, they're navigating the turbulent waters of the media industry which is grappling with linear declines and a volatile macro-economic environment. Yet, they remain steadfast in their commitment to nurture their burgeoning streaming business.
The company has been tightlipped about which employees will receive pink slips, but it's likely many will get the boot on Tuesday. Globally, Paramount employed approximately 18,600 people full-time or part-time in 2024.
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There's a possibility that Paramount workers based in other countries might also feel the axe's swing in the long run, the memo hinted. The company, however, vowed to support all affected employees with sensitivity during this turbulent period.
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The company, which is still waiting for its proposed merge with Skydance Media to close, boasted a market cap of $8.6 billion on Tuesday afternoon. If finalized, the merger will expand Paramount's empire, which currently encompasses Paramount, Comedy Central, MTV, Nickelodeon, CBS, and Paramount Pictures, among other properties.
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It's worth noting that a merger may encounter numerous obstacles. For instance, the deal between Paramount and Skydance requires approval from the U.S. Federal Communications Commission (FCC). However, the FCC is short-handed, with only two members, potentially slowing the review process. The FCC Chairman, Brendan Carr, has put off formal review due to ongoing legal issues related to Trump's lawsuit against Paramount's CBS subsidiary.
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Trump's lawsuit, stemming from an alleged instance of deceptive editing of a Kamala Harris interview on '60 Minutes,' has added another layer of complication. Although Paramount has attempted to negotiate a settlement, Trump has rejected their offers and demanded a public apology. Any settlement could raise concerns about breaching anti-bribery laws.
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The uncertainty surrounding the merger has already taken a toll on Paramount's stock, causing shares to slide 25% since January 2025. Cautious investors are treading lightly, waiting to see whether the deal will come to fruition.
In response to the regulatory challenges, Paramount has taken internal measures, including the appointment of new board directors and the replacement of its CFO. As they await the FCC's go-ahead, they're keeping their fingers crossed and their champagne chilled, ready to toast the union of Paramount and Skydance.
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- The proposed merger between Paramount Global and Skydance Media, if successful, could increase Paramount's capital, allowing for potential large-scale investment in technology to strengthen its business and financial holdings.
- Amidst the potential roadblocks in the Paramount-Skydance merger, the company is consciously managing its workforce, aiming to streamline operations and maintain a healthy portfolio in the volatile markets of the media industry.
- Despite the uncertainties surrounding the merger, Paramount Global, a multinational business owning properties such as Paramount, CBS, and Nickelodeon, remains committed to expanding its empire, keeping an eye on both the regulatory and market conditions.
