Paramount Co-CEOs Tell Staff That With Skydance Deal Dead “Work Is Already Underway” on Their Strategic Plan

A day after Skydance’s bid for the company officially ended, Paramount Global‘s three co-CEOs are beginning to execute on their strategic plan for the company.

The executives — Brian Robbins, Chris McCarthy and George Cheeks — sent a note to staff Tuesday addressing the deal, and adding that the strategic plan they outlined at last week’s annual shareholder meeting is still very much their priority, adding that “work is already underway” on the plan.

“As you heard yesterday, the proposed transaction with Skydance Media is not moving forward,” the co-CEOs wrote. “So, what does this mean for Paramount? While the Board will always remain open to exploring strategic alternatives that create value for shareholders, we continue to focus on executing the strategic plan we unveiled last week during the Annual Shareholder Meeting, which we are confident will set the stage for growth for Paramount.”

That strategy — articulated last week –consists of changing the company’s streaming strategy to speed up its profitability, reducing costs, and divesting some non-core businesses.

While the executives acknowledged that the Paramount board (and for that matter Shari Redstone’s National Amusements) could still cut a deal that changes Paramount’s ownership, for the time being they are going to follow through on their plan.

That being said, the executives were also granted enhanced severance packages in the event of a deal, as well as expanded cash bonuses connected to their new roles.

The note comes less than a day after Redstone effectively nixed Skydance’s bid for the company, with a number of factors at play in that decision.

Read the memo, below.

Hi Everyone,

As promised, we want to be as transparent as possible and share information whenever we can.

As you heard yesterday, the proposed transaction with Skydance Media is not moving forward. So, what does this mean for Paramount? While the Board will always remain open to exploring strategic alternatives that create value for shareholders, we continue to focus on executing the strategic plan we unveiled last week during the Annual Shareholder Meeting, which we are confident will set the stage for growth for Paramount.

Work is already underway, as we focus on three pillars:

—Transforming our streaming strategy to accelerate its path to profitability
—Streamlining the organization and reducing non-content costs

—Optimizing our asset mix, by divesting some of our businesses to help pay down our debt

As we advance each of these initiatives, we will continue to prioritize investment in our world class franchises, films, series and sports, which are the core of our business.

Importantly, we want to thank you for your hard work and your continued focus. We recognize that the last several months have not been easy as we manage through ongoing change and speculation. And, we should all expect some of this to undoubtedly continue as the media industry and our business continue to evolve.

As we look ahead, we are confident about what’s in store for Paramount. We believe in you and we believe in Paramount. We have the content, the people, and the right plan to ensure a strong future. And, we look forward to discussing our strategy in more detail at our Global Town Hall on June 25.

In the meantime, we hope you’re able to participate in Community Day and spend time with colleagues while giving back to local communities around the world.

Thank you again for all that you do.

Best,

George, Chris and Brian