Paramount CEO Bob Bakish 'will be fired imminently as he's lost trust with Shari Redstone' with entertainment giant's merger with Skydance 'to be finalized this week'

Entertainment giant Paramount Global is ready to fire CEO Bob Bakish as early as Monday morning, which is just days before a possible merger with Skydance could be finalized, according to reports.

Paramount reports its quarterly earnings today and Bakish, who's been the chief executive since 2019, won't be on that call, CNBC reported.

There's no denying that Paramount has been struggling lately. The company cut 800 jobs a day after its very own CBS hosted this year's Super Bowl, which had record ratings. 

Paramount also lost $490 million from the streaming sector of its business in the last quarter of 2023, despite its flagship service Paramount+ adding 4.1 million subscribers over that same period. 

The board appears to be looking to Larry Ellison's son David, the CEO and founder of Skydance, to take the company in a new direction. Paramount and Skydance are in an exclusive deal-making window until May 3, though this could be extended.

Bob Bakish (pictured) is set to be fired by Paramount's board on the eve of a possible merger with David Ellison's Skydance

David Ellison, CEO of Skydance Media, attends the 81st Annual Golden Globe Awards at The Beverly Hilton on January 7, 2024

David Ellison pictured with his wife Sandra Lynn Modic at Super Bowl LVII in 2024

Paramount's non-executive chairwoman and controlling shareholder Shari Redstone has lost her trust in Bakish and has wanted to oust him, CNBC reported. 

Bakish, who was accused of sexual harassment in 2020 but was subsequently cleared of any wrongdoing by ViacomCBS, has argued against the Skydance merger in private, saying it would dilute Paramount's shareholders, CNBC reported.

Under any Skydance-Paramount merger, Bakish will be out at the company and for now, the plan is that Ellison will run the company.

The deal terms stipulate that Skydance and its private equity partners will own 50 percent of the merged conglomerate, while common shareholders would own the remaining 50 percent.

Paramount Stock Price prior to opening bell on Monday April 29, 2024

An internal investigation cleared Bakish (pictured) of sexual misconduct claims made by a female employee in 2020

Bakish and Shari Redstone pictured together as the Nasdaq MarketSite in New York on December 5, 2019. Redstone has reportedly wanted Bakish out as CEO for a while

If the deal does happen to fall through, even though Redstone reportedly supports the merger, there are other companies looking to swoop in with attractive buyout offers.

Sony Pictures is considering joining Apollo Global Entertainment's $26 billion bid for Paramount, a much larger offer than Skydance is prepared to go with.

Sony and Apollo will have to wait though - at least until the May 3 deadline for the negotiations with Skydance lapses.

Ellison is confident that he'll prevail in taking over Paramount, the LA Times reported a week ago. 

Over the last five days, Paramount's stock has sunk a little over four percent, though in premarket trading on Monday, shares have gained over five percent on hopes of a successful merger with Skydance, according to Barron's.

David Ellison could be at the helm of Paramount in weeks if his proposed deal goes through

Oracle founder Larry Ellison, arrives with children Megan Ellison and David Ellison at the LA Premiere of 'Terminator Genisys' on June 28, 2015

Shari Redstone (pictured) supports the Skydance deal, according to reports

Talks of a merger come as the jet-setting, super-car driving son of Oracle founder Larry Ellison has differentiated himself from the rest of the offspring of billionaires by setting out on his own as a successful media mogul. 

And now roughly 14 years after Ellison founded Skydance, the company is on the cusp of absorbing Paramount, which has a massive library of classics such as the 'The Godfather,' 'Indiana Jones,' 'Braveheart,' 'Titanic,' and countless more.

If the deal is successful, the 41-year-old will also acquire the powerful brand's sprawling array of assets including CBS Entertainment, the BET, MTV, Nickelodeon cable channels and a national movie theater chain, reports the LA Times. 

The proposed deal would see Skydance take over the parent company National Amusements, which owns nearly 80 percent of Paramount Global's voting shares for $2 billion in cash.