Paramount Global’s leadership team told employees Wednesday the company will focus on its new plan to transform its streaming business, reduce costs and divest some assets to help pay down debt, according to an email seen by Reuters.
The message comes a day after Paramount’s controlling shareholder, Shari Redstone, opted to end deal talks with Skydance Media.
“We recognize the last several months have not been easy as we manage through ongoing change and speculation,” wrote the company’s co-CEOs Brian Robbins, George Cheeks and Chris McCarthy. “And we should expect some of this to undoubtedly continue.”
Redstone, the daughter of late media tycoon Sumner Redstone, had been expected to sell her family’s stake to Ellison as part of a $2.25 billion deal for the family’s holding company, National Amusements. It was one element of a complex $8 billion transaction that would have resulted in the merger of Paramount, a venerable Hollywood studio, with the smaller Skydance.
The media heiress abruptly ended talks with David Ellison’s Skydance on Tuesday, even as a special committee of Paramount’s board was poised to meet to discuss deal status.
Employees who spoke anonymously to Reuters said they were shocked by the news.
Paramount’s co-CEOs said the board would “remain open” to exploring strategic alternatives. Meanwhile, they plan to advance the strategic plan they outlined last week at the company’s annual shareholder meeting.
The leadership said it would invest in film and TV franchises, series and sports, which it describes as the “core of our business.”
Paramount shares are down 25% this year.
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