Skydance extends final offer to Paramount as merger talks stick on a possible shareholder vote

In what could easily be a plotline from HBO's hit show "Succession," Paramount Global plans to replace Chief Executive Officer Bob Bakish with a cohort of existing division heads on Monday, according to people familiar with the matter, in a chessboard-altering move designed to accelerate the company's future — one way or another.

Paramount is expected to announce Bakish's departure Monday before reporting its earnings conference call, which comes after the markets close.

The decision to remove Bakish as CEO comes as Paramount Global closes in on a merger agreement with Skydance Media. His departure throws into question Paramount's near-term future as a standalone company, which could help force through a merger agreement.

The Skydance consortium, which includes private equity firms KKR and RedBird Capital, has proposed a deal with new terms to the Paramount special committee as a "best and final" offer, according to people familiar with the matter. Skydance is waiting to hear back from the special committee on whether it will accept the offer, said the people, who asked not to be named because the discussions are private.

As part of the new deal on the table, controlling shareholder Shari Redstone may take less than $2 billion for her controlling stake in Paramount — lower than what Skydance had initially offered her. The Skydance consortium is contributing additional capital to pay common, Class B shareholders at a nearly 30% premium to the undisturbed trading price of about $11 per share, according to people familiar with the new deal. In total, Redstone and Skydance would contribute $3 billion, with the vast majority going to Class B shareholders, the people said.

Skydance's valuation as part of the deal remains around $5