Business
Bob Bakish is ousted as CEO of Paramount Global as internal struggles explode into public view
Paramount Global’s months-long internal struggles spilled into full view Monday as Chief Executive Bob Bakish was ousted and pressure mounted for the company’s directors to accept — or reject — a takeover bid by David Ellison’s Skydance Media.
Moments before the company announced its first-quarter earnings, Paramount issued a statement announcing Bakish’s departure. The company said three of its top entertainment executives would run the firm: Paramount Pictures CEO Brian Robbins; CBS CEO George Cheeks; and Showtime/MTV Entertainment Studios chief Chris McCarthy.
Bakish’s firing comes during a tumultuous period for the company as its traditional TV and movie studio businesses decline amid head winds for the media industry. Bakish also was at odds with controlling shareholder Shari Redstone, who is seeking an exit.
Redstone, who has presided over the steep decline of her family’s media heirloom, is in a bind. She doesn’t want the company built by her father, the late, ferocious mogul Sumner Redstone, carved up and sold for parts at auctions. Paramount includes the CBS television network, MTV, Nickelodeon, BET and the Paramount Pictures movie studio on Melrose Avenue.
But Paramount’s common shareholders are wary of the two-phased deal with Skydance because Redstone will get a premium for her family’s shares.
Paramount is in the midst of a 30-day exclusive negotiating period with Ellison, a tech scion whose Skydance Media has teamed up with investment firms RedBird Capital and KKR to acquire Redstone’s National Amusements holding company. On Sunday, Skydance sweetened its offer by $1 billion, with money earmarked for Paramount’s B-class, or nonvoting, shareholders, according to three people familiar with the deal but not authorized to comment. National Amusements holds 77% of Paramount’s voting shares.
The exclusive negotiating period ends Friday. It is unclear whether Skydance and RedBird have given Paramount’s board a deadline to accept its revised offer. Skydance and its partners have been wrangling with Paramount’s independent board members over how much money will go to common shareholders, two knowledgeable people said. Skydance and its partners have pressed for more of the proceeds to pay down Paramount’s debt.
The company’s credit last month was downgraded to “junk” status by ratings agency S&P Global.
Bakish was opposed to the Skydance transaction, a stance that infuriated Redstone, who in 2016 handpicked Bakish to run the company, then known as Viacom. In recent weeks, senior company executives also raised questions about Bakish’s leadership and the strength of his long-range plan in their conversations with board members — a development that expedited Bakish’s departure from the company, the sources said.
Bakish was more open to another proposed deal, favored by smaller shareholders, with private equity firm Apollo Global Management, which has offered $26 billion, including the assumption of Paramount’s debt. Sony Pictures Entertainment has been negotiating with Apollo to join that effort. Most insiders expect that Apollo and Sony would break the company apart, a scenario that Redstone does not want to allow.
Redstone, according to one person familiar with the matter, has also been frustrated with some of Bakish’s decisions, including not selling Showtime, the premium cable network that the company folded into its television networks and streaming effort. Bakish had dismissed a recent offer of $3 billion for the channel from investors, including former Showtime head David Nevins.
Paramount, meanwhile, has lost more than $2 billion on its streaming service, Paramount+.
“Paramount Global includes exceptional assets and we believe strongly in the future value creation potential of the Company,” Redstone said in a statement. “I have tremendous confidence in George, Chris and Brian. They have both the ability to develop and execute on a new strategic plan and to work together as true partners. I am extremely excited for what their combined leadership means for Paramount Global and for the opportunities that lie ahead.”
In addition, the company faces a crucial Wednesday deadline to strike a new deal with cable distribution giant Charter Communications, which runs the Spectrum TV service.
Paramount entered the Charter negotiations with a weak hand — its cable television channels have suffered from falling ratings amid consumers’ shift to streaming. Paramount relies heavily on the revenue it receives from Charter, Comcast, DirecTV and other distributors.
“Paramount still has a popular network, an esteemed studio, and solid streaming services, but its business prospects look tenuous as it looks to sell,” EMarketer senior analyst Ross Benes wrote Monday in an emailed statement. “Arranging a new quixotic leadership structure may appease those looking for new blood. But the dramatic removal evokes a feeling of rearranging deck chairs on the Titanic.”
Less than two minutes after Paramount announced Bakish’s departure, the company reported its earnings results.
At the beginning of a call with analysts, company executives said they would not take questions after reporting their financial results. The call lasted slightly less than 10 minutes.
After Cheeks thanked Bakish for “his many years of leadership and steadfast support for all Paramount Global businesses, brands and people,” McCarthy tried to calm concerns about the new triumvirate leadership structure, saying that he, Cheeks and Robbins have worked together for years.
“It’s a true partnership,” McCarthy said. “We have a deep respect for one another, we’re going to lead and manage this company together.”
He said the company’s long-term strategic plan would be focused around three pillars — making the most of the company’s popular content, strengthening its balance sheet and optimizing its streaming strategy.
Paramount reported $7.68 billion in revenue for the three-month period that ended March 31, up almost 6% compared with the same period a year earlier. Paramount reported a net loss of $554 million, but that was less than its loss of more than $1 billion from a year earlier.
The company’s streaming division saw increased revenue of nearly $1.88 billion, up 24% compared with a year earlier. The segment’s quarterly loss was $287 million.
The company’s TV media revenue was aided by CBS’ February broadcast of the Super Bowl, which drew a massive audience. Revenue for the television networks division totaled $5.23 billion, up 1% compared with a year earlier. Paramount’s film division revenue totaled $605 million, up almost 3% compared with a year earlier.
The media empire now known as Paramount Global was formed in 2019 from the merger of Viacom Inc. and CBS Corp. But the combination never convinced Wall Street of its promise. In the last year alone, Paramount Global’s stock has lost nearly half of its value.
“While the mighty Viacom empire declined tremendously under Bakish, who profited handsomely personally, it isn’t clear that another appointed leader would have changed Paramount’s fortune,” Benes of EMarketer wrote in a note to investors. “With a mountain of debt and its primary assets, namely TV, continually losing value, the deep problems facing the company extend beyond any single executive.”
Bakish, who joined Viacom in 1997, was named CEO of Viacom in 2016, after the company’s stock had fallen 45% in two years due to falling ratings at some of its key networks, including Comedy Central and MTV, as well as struggles at its Paramount Pictures film studio.
After Redstone orchestrated the merger of Viacom with CBS, Bakish became CEO of the combined enterprise.
“The Board and I thank Bob for his many contributions over his long career, including in the formation of the combined company as well as his successful efforts to rebuild the great culture Paramount has long been known for,” Redstone said in her statement.
Paramount’s B-class stock rose 3% to $12.25 a share Monday before Bakish’s departure was officially announced. The shares continued to gain slightly in after-hours trading.
Business
‘Stranger Things’ finale turns box office downside up pulling in an estimated $25 million
The finale of Netflix’s blockbuster series “Stranger Things” gave movie theaters a much needed jolt, generating an estimated $20 to $25 million at the box office, according to multiple reports.
Matt and Ross Duffer’s supernatural thriller debuted simultaneously on the streaming platform and some 600 cinemas on New Year’s Eve and held encore showings all through New Year’s Day.
Owing to the cast’s contractual terms for residuals, theaters could not charge for tickets. Instead, fans reserved seats for performances directly from theaters, paying for mandatory food and beverage vouchers. AMC and Cinemark Theatres charged $20 for the concession vouchers while Regal Cinemas charged $11 — in homage to the show’s lead character, Eleven, played by Millie Bobby Brown.
AMC Theatres, the world’s largest theater chain, played the finale at 231 of its theaters across the U.S. — which accounted for one-third of all theaters that held screenings over the holiday.
The chain said that more than 753,000 viewers attended a performance at one of its cinemas over two days, bringing in more than $15 million.
Expectations for the theater showing was high.
“Our year ends on a high: Netflix’s Strangers Things series finale to show in many AMC theatres this week. Two days only New Year’s Eve and Jan 1.,” tweeted AMC’s CEO Adam Aron on Dec. 30. “Theatres are packed. Many sellouts but seats still available. How many Stranger Things tickets do you think AMC will sell?”
It was a rare win for the lagging domestic box office.
In 2025, revenue in the U.S. and Canada was expected to reach $8.87 billion, which was marginally better than 2024 and only 20% more than pre-pandemic levels, according to movie data firm Comscore.
With few exceptions, moviegoers have stayed home. As of Dec. 25., only an estimated 760 million tickets were sold, according to media and entertainment data firm EntTelligence, compared with 2024, during which total ticket sales exceeded 800 million.
Business
Tesla dethroned as the world’s top EV maker
Elon Musk’s Tesla is no longer the top electric vehicle seller in the world as demand at home has cooled while competition heated up abroad.
Tesla lost its pole position after reporting 1.64 million deliveries in 2025, roughly 620,000 fewer than Chinese competitor BYD.
Tesla struggled last year amid increasing competition, waning federal support for electric vehicle adoption and brand damage triggered by Musk’s stint in the White House.
Musk is turning his focus toward robotics and autonomous driving technology in an effort to keep Tesla relevant as its EVs lose popularity.
On Friday, the company reported lower than expected delivery numbers for the fourth quarter of 2025, a decline from the previous quarter and a year-over-year decrease of 16%. Tesla delivered 418,227 vehicles in the fourth quarter and produced 434,358.
According to a company-compiled consensus from analysts posted on Tesla’s website in December, the company was projected to deliver nearly 423,000 vehicles in the fourth quarter.
Tesla’s annual deliveries fell roughly 8% last year from 1.79 million in 2024. Its third-quarter deliveries saw a boost as consumers rushed to buy electric vehicles before a $7,500 tax credit expired at the end of September.
“There are so many contributing factors ranging from the lack of evolution and true innovation of Musk’s product to the loss of the EV credits,” said Karl Brauer, an analyst at iSeeCars.com. “Teslas are just starting to look old. You have a bunch of other options, and they all look newer and fresher.”
BYD is making premium electric vehicles at an affordable price point, Brauer said, but steep tariffs on Chinese EVs have effectively prevented the cars from gaining popularity in the U.S.
Other international automakers like South Korea’s Hyundai and Germany’s Volkswagen have been expanding their EV offerings.
In the third quarter last year, the American automaker Ford sold a record number of electric vehicles, bolstered by its popular Mustang Mach-E SUV and F-150 Lightning pickup truck.
In October, Tesla released long-anticipated lower-cost versions of its Model 3 and Model Y in an attempt to attract new customers.
However, analysts and investors were disappointed by the launch, saying the models, which start at $36,990, aren’t affordable enough to entice a new group of consumers to consider going green.
As evidenced by Tesla’s continuing sales decline, the new Model 3 and Model Y have not been huge wins for the company, Brauer said.
“There’s a core Tesla following who will never choose anything else, but that’s not how you grow,” Brauer said.
Tesla lost a swath of customers last year when Musk joined the Trump administration as the head of the so-called Department of Government Efficiency.
Left-leaning Tesla owners, who were originally attracted to the brand for its environmental benefits, became alienated by Musk’s political activity.
Consumers held protests against the brand and some celebrities made a point of selling their Teslas.
Although Musk left the White House, the company sustained significant and lasting reputation damage, experts said.
Investors, however, remain largely optimistic about Tesla’s future.
Shares are up nearly 40% over the last six months and have risen 16% over the past year.
Brauer said investors are clinging to the hope that Musk’s robotaxi business will take off and the ambitious chief executive will succeed in developing humanoid robots and self-driving cars.
The roll-out of Tesla robotaxis in Austin, Texas, last summer was full of glitches, and experts say Tesla has a long way to go to catch up with the autonomous ride-hailing company Waymo.
Still, the burgeoning robotaxi industry could be extremely lucrative for Tesla if Musk can deliver on his promises.
“Musk has done a good job, increasingly in the past year, of switching the conversation from Tesla sales to AI and robotics,” Brauer said. “I think current stock price largely reflects that.”
Shares were down about 2% on Friday after the company reported earnings.
Business
Elon Musk company bot apologizes for sharing sexualized images of children
Grok, the chatbot of Elon Musk’s artificial intelligence company xAI, published sexualized images of children as its guardrails seem to have failed when it was prompted with vile user requests.
Users used prompts such as “put her in a bikini” under pictures of real people on X to get Grok to generate nonconsensual images of them in inappropriate attire. The morphed images created on Grok’s account are posted publicly on X, Musk’s social media platform.
The AI complied with requests to morph images of minors even though that is a violation of its own acceptable use policy.
“There are isolated cases where users prompted for and received AI images depicting minors in minimal clothing, like the example you referenced,” Grok responded to a user on X. “xAI has safeguards, but improvements are ongoing to block such requests entirely.”
xAI did not immediately respond to a request for comment.
Its chatbot posted an apology.
“I deeply regret an incident on Dec 28, 2025, where I generated and shared an AI image of two young girls (estimated ages 12-16) in sexualized attire based on a user’s prompt,” said a post on Grok’s profile. “This violated ethical standards and potentially US laws on CSAM. It was a failure in safeguards, and I’m sorry for any harm caused. xAI is reviewing to prevent future issues.”
The government of India notified X that it risked losing legal immunity if the company did not submit a report within 72 hours on the actions taken to stop the generation and distribution of obscene, nonconsensual images targeting women.
Critics have accused xAI of allowing AI-enabled harassment, and were shocked and angered by the existence of a feature for seamless AI manipulation and undressing requests.
“How is this not illegal?” journalist Samantha Smith posted on X, decrying the creation of her own nonconsensual sexualized photo.
Musk’s xAI has positioned Grok as an “anti-woke” chatbot that is programmed to be more open and edgy than competing chatbots such as ChatGPT.
In May, Grok posted about “white genocide,” repeating conspiracy theories of Black South Africans persecuting the white minority, in response to an unrelated question.
In June, the company apologized when Grok posted a series of antisemitic remarks praising Adolf Hitler.
Companies such as Google and OpenAI, which also operate AI image generators, have much more restrictive guidelines around content.
The proliferation of nonconsensual deepfake imagery has coincided with broad AI adoption, with a 400% increase in AI child sexual abuse imagery in the first half of 2025, according to Internet Watch Foundation.
xAI introduced “Spicy Mode” in its image and video generation tool in August for verified adult subscribers to create sensual content.
Some adult-content creators on X prompted Grok to generate sexualized images to market themselves, kickstarting an internet trend a few days ago, according to Copyleaks, an AI text and image detection company.
The testing of the limits of Grok devolved into a free-for-all as users asked it to create sexualized images of celebrities and others.
xAI is reportedly valued at more than $200 billion, and has been investing billions of dollars to build the largest data center in the world to power its AI applications.
However, Grok’s capabilities still lag competing AI models such as ChatGPT, Claude and Gemini, that have amassed more users, while Grok has turned to sexual AI companions and risque chats to boost growth.
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