Paramount Global (formerly ViacomCBS)

Business in Russia

Main article: ViacomCBS Networks International

2011: Opening of a representative office in Moscow

In 2011, Viacom International Media Networks (a division of Viacom) opened a representative office in Moscow, responsible for the markets of Russia and the CIS countries, Ukraine and the Baltic states.

History

2024

Oracle founder gains control of Paramount and his son takes over the Oracle

In early September 2024, it became known that the founder of Oracle Corporation Larry Ellison will own 77.5% of the National Amusements holding, which is the parent structure of the Paramount Global media company. The rest of National Amusements will be owned by private investor Gerry Cardinale, founder of RedBird. He is listed as the controlling entity of RB Tentpole LP - a partnership that will own 22.5% of the named entity.

According to Bloomberg, Ellison, after the closure of Skydance's deal to buy the media company Paramount Global, will gain control of National Amusements through a trust and a number of corporations. Skydance founder and son Larry David will become chairman and CEO of Paramount: He will exercise operational control over the business.

Bloomberg

As part of the deal, Skydance will pay $1.75 billion for National Amusements. At the same time, National Amusements President Shari Redstone will receive about $350 million for his share and another $180 million in severance pay and pension payments. It is assumed that as a result of the transaction, New Paramount will be formed with an estimated value of $28 billion. The transaction is expected to close in 2025.

According to Interfax, the terms of the Skydance and Paramount deal provide for a total of $2.4 billion for National Amusements and another $4.5 billion for voting (class "A") and non-voting (class "B") Paramount shares, as well as providing it with $1.5 billion in primary capital. Paramount owns the CBS television network and a number of television stations. Ellison and their partner RedBird Capital Partners agreed to buy National Amusements and invest more than $6 billion in acquiring Paramount shares and reducing the company's debt.^[1]

Mass layoffs due to losses

On August 8, 2024, the American media holding Paramount announced a reorganization, which, among other things, provides for mass layoffs. These measures are associated with losses, as well as the need to change the structure against the background of a merger with the film production company Skydance Media.

As of the end of 2023, Paramount Global had about 21.9 thousand employees around the world. The cuts will affect the media holding team in: roughly USA 2,000 people, or 15% of the regional state, are expected to be laid off.

Bloomberg

Chris McCarthy, head of Showtime/MTV Entertainment Studios and Paramount Media Networks, said the job cuts will primarily affect the company's marketing and communications departments. In addition, some other divisions will be affected, including the areas of jurisprudence, finance and corporate functions. McCarthy said Paramount expects to complete the layoffs by the end of 2024.

In turn, Paramount CFO Naveen Chopra noted that due to the decrease in headcount, the company will incur additional restructuring costs in the amount of $300-$ 400 million in the third quarter of 2024.

According to Variety, duplicate positions will be abolished as part of the reorganization. This will optimize business processes and reduce costs, as well as prepare to merge with Skydance. Earlier it was reported that Paramount expects to reduce annual costs by $500 million, including through layoffs. At the same time, Skydance, working with the consulting firm Bain & Co., seeks to achieve cost synergies at Paramount of at least $2 billion a year. The companies intend to complete the merger by September 30, 2025.^[2]

Skydance buys Paramount in $28bn deal

In July 2024, a $28 billion deal was announced in which Skydance buys Paramount. The deal is scheduled to close in the first half of 2025.^[3]

3% staff reduction

On February 13, 2024, the American media conglomerate Paramount Global announced a reorganization due to lack of money. The initiative provides for a decrease in the number of personnel by about 3% and a reduction in costs. This is expected to help in the implementation of the company's strategy aimed at improving business operations.

The upcoming changes were announced by Paramount Global CEO Bob Bakish. The layoffs will affect units around the world, he said. In total, approximately 800 people will lose their jobs, including a number of workers outside the United States. According to CNN, some prominent CBS News journalists will be among the abbreviated employees.

Paramount

Paramount Global owns a variety of assets including CBS, Paramount Pictures, Pluto TV, Paramount + and cable networks such as Nickelodeon, BET and Comedy Central. The decrease in the number of personnel occurs, among other things, due to the fact that the media company is considering options for merging with other market participants. In particular, preliminary negotiations as of mid-February 2024 were held with Warner Bros. Discovery. In addition, it was reported that the head of National Amusements (parent structure of Paramount Global), Shari Redstone, discussed the possibility of selling the business with David Ellison, CEO of Skydance Media.

It is also expected that the reorganization will help improve the activities of a number of divisions. Paramount Global will focus its resources on "the most sought-after and resonant franchises, films and TV series" and produce fewer local and international original materials, Bakish said. In addition, Bakish said the company should "become more frugal and spend less money."^[4]

2022: Renamed Paramount Global

On February 16, 2022, during a Q4 earnings presentation, the corporation announced that it would change its name to Paramount Global.

2019: CBS Corporation and Viacom re-merge

Company logo

The corporation (as ViacomCBS Inc.) was formed by re-merging CBS Corporation and Viacom on December 4, 2019.

Viacom (abbreviated from Video & Audio Communications) is an American media conglomerate that includes cable and satellite television networks MTV Networks and BET, the Nickelodeon channel, and also creates and distributes films (Paramount Pictures).

2008: Top 20 internet giants by size of internet audience

Internet companies by audience size

2005: Split into CBS Corporation and Viacom

In 2005, the company split into CBS Corporation and Viacom. CBS Corporation incorporated CBS, The CW, CBS RADIO, Simon & Schuster, CBS Outdoor, Showtime, CBS Television Studios, CBS Television Distribution and CBS Studios International, CBS College Sports Network, and Paramount Parks entertainment parks.

In turn, Viacom included MTV Networks, BET Networks, Paramount Pictures Film Studio and Paramount Pictures Home Entertainment, and listed its shares on the New York Stock Exchange.

2000: Merger with CBS Corporation

In 2000, Viacom made the largest deal in its history ($39.8 billion), announcing a merger with CBS Corporation, which allowed Viacom to gain an expanded list of its television channels at the expense of TNN (now Spike TV) and Country Music Television (CMT), which became part of MTV Networks.

1971: Separation from Columbia Broadcasting System Corporation

The birth of Viacom began with the creation of CBS Films, Inc. a CBS television division established in 1952. On July 4, 1971, Viacom split from Columbia Broadcasting System, Inc. (CBS) as a public company in its own right. The name of Viacom comes from the merger of words - Video & Audio Communications.

1965: Paramount Pictures logo update

The logo of the Paramount Pictures film company on the day it was originally written, 1965.

Notes