Ariel Investments Chairman John Rogers Talks Paramount
Apr 30, 2024
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Ariel Investments Chairman John Rogers discusses Paramount's future amid CEO Bob Bakish stepping down with Bloomberg hosts. Topics include Paramount's potential merger with Sony, corporate governance concerns in company combinations, and the diverse assets of Paramount Global and a potential deal with Skydance.
Concerns over the timing of Bob Bakisch's departure during critical business dealings with Skydance.
Importance of thorough evaluation in deals, favoring an Apollo-Sony merger for stability over risky Skydance transaction.
Deep dives
Skydance Negotiations and CEO Departure
The sudden departure of Bob Bakisch, amidst negotiations with Skydance, raised significant concerns for shareholders. Ariel Investments found the timing of this move extremely problematic, especially during critical business dealings. Reports suggested Bakisch's exit stemmed from disagreements on deals with Skydance. John Rogers emphasized the need for certainty in deals, leaning towards an Apollo-Sony merger for stability over a potentially risky Skydance transaction.
Ownership Restructuring and Mergers
John Rogers expressed concerns around corporate governance and the departure of independent board members amid M&A speculations. He highlighted the importance of seeking fair deals for all shareholders, advocating for a thorough evaluation before rushing into agreements. Rogers favored the Apollo-Sony deal, citing its potential for synergies, higher cash flow, and experienced management to navigate the Paramount's turnaround.
Paramount's Valuable Assets and Investment Strategy
John Rogers praised Paramount's diverse and valuable portfolio, including renowned franchises like CSI and Godfather, alongside successful streaming services like Pluto. Despite industry challenges like cord-cutting, Rogers emphasized the hidden values within Paramount Global, urging investors to consider the company's varied assets and not sell amidst uncertainties around potential deals.
Ariel Investments Chairman John Rogers discusses Paramount's future amid CEO Bob Bakish stepping down. He speaks with Bloomberg's Caroline Hyde and Ed Ludlow.