Paramount Global Launches Strategic Review Amid Skydance Merger Talks, CBS News CEO Wendy McMahon Resigns

Paramount Global (PARA) announced on Monday that its board has initiated a review and evaluation of strategic alternatives to maximize shareholder value. 

“As Paramount continues to build on the strong leasing momentum from the first quarter, the board and management team remain focused on closing the persistent gap between the company’s public market valuation and our assessment of its intrinsic value, “ said CEO Albert Behler.

The company stated that it will not comment publicly on the strategic review process until it has been completed.

However, there is no set timetable for completing the strategic review, and the company said it can give no assurances about its outcome.

CBS News CEO Wendy McMahon also announced her resignation on Monday amid heightened internal scrutiny as Paramount, CBS' corporate parent, seeks federal approval for a proposed merger with Skydance Media. 

According to a report by CNBC, McMahon’s resignation follows growing friction between CBS News and Paramount’s controlling shareholder, Shari Redstone, who has taken issue with leadership and coverage decisions on politically sensitive topics.

Paramount’s proposed merger with Skydance Media would pay Redstone over $1.5 billion for her controlling stake. 

However, Paramount and Redstone are involved in settlement negotiations with lawyers for President Donald Trump to settle his $20 billion lawsuit against CBS' signature show, ‘60 Minutes’.

Paramount Global’s board has reportedly pressured Cheeks and McMahon to provide specific details about the programming scheduled for the show. Veteran executive producer of ‘60 Minutes’ Bill Owens resigned last month, citing increased scrutiny.

“Our parent company Paramount is trying to complete a merger,” “60 Minutes” correspondent Scott Pelley said on-air at the end of an episode last month after Owens resigned. “The Trump administration must approve it. Paramount began to supervise our content in new ways. None of our stories has been blocked, but Bill felt he had lost the independence that honest journalism requires.”

The merger has drawn attention from regulators, including the FCC, which has questioned the company’s journalistic practices and corporate diversity programs.

Paramount’s stock has gained over 12% this year but has fallen more than 4% in the last 12 months.

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