In a surprising turn of events, Paramount Global is expected to announce the resignation of CEO Bob Bakish as early as Monday morning. This decision comes amidst ongoing negotiations with Skydance and ahead of the company's quarterly earnings report set to be released later in the day.

Rumors of Bakish's potential exit began circulating on Friday, with reports suggesting that Paramount's controlling shareholder and executive chair, Shari Redstone, was dissatisfied with some of Bakish's recent strategic moves. Specifically, Redstone was reportedly unhappy with Bakish's decision not to sell Showtime and an aborted sale process for BET.

Furthermore, it appears that Bakish and Redstone have differing views on a possible deal with David Ellison's Skydance. Sources indicate that Bakish is opposed to the deal, while Redstone is in favor of it. The two companies are currently in an exclusive month-long negotiating period, nearing its end.

As Paramount prepares to report its first quarter earnings after the market closes on Monday, it is expected that Bakish will not be present during the conference call. The company has not disclosed how it plans to replace him.

Reports suggest the possibility of creating an "office of the CEO" led by division heads including Brian Robbins, George Cheeks, and Chris McCarthy. Robbins currently serves as President & CEO of Paramount Pictures & Nickelodeon and Chief Content Officer for Movies and Kids & Family on Paramount+. Cheeks holds the position of President-CEO of CBS, while also serving as Chief Content Officer for News and Sports on Paramount+. McCarthy serves as President of Entertainment & Youth Brands for Domestic Media Networks.

Bakish has been a long-standing figure within Paramount, and was appointed as CEO of the newly merged ViacomCBS in 2019 following the deal pushed through by Shari Redstone. The company recently changed its name to Paramount Global in 2022.

In other news, it was announced that four directors will be stepping down from the board at Paramount's annual meeting in June.

This latest development further adds to the ongoing drama surrounding Paramount. The company has faced financial challenges due to streaming losses and declining linear viewership since last fall. In an effort to secure its future, Paramount initiated talks with Skydance, backed by Larry Ellison's deep-pocketed Oracle co-founder, as well as Gerry Cardinale's RedBird Capital. However, Sony has also expressed interest in making an offer and is partnering with Apollo, ready to step in if the Skydance deal falls through.

The deal being considered with Skydance is complex, involving the acquisition of Shari Redstone's family holding company NAI, which controls Paramount Global, followed by a merger with Skydance.

Paramount Global's official announcement regarding Bakish's departure and the outcome of the negotiations with Skydance are eagerly awaited, as investors and industry insiders closely monitor the company's future and potential leadership adjustments.