Paramount Global (NASDAQ:PARA), a leading media and entertainment company, disclosed the departure of Christa A. D’Alimonte, the Executive Vice President, General Counsel, and Secretary. The announcement came through an 8-K filing with the Securities and Exchange Commission on Friday.
D’Alimonte, who has played a significant role in Paramount's legal affairs, will leave the company on Thursday. The company stated that her exit is classified as a termination without cause. As per the terms of her employment agreement dated March 15, 2022, D’Alimonte is entitled to receive post-employment payments and benefits.
Following D’Alimonte's departure, Caryn K. Groce, currently the Executive Vice President, Deputy General Counsel, and Assistant Secretary, will step in as the acting General Counsel for Paramount Global.
Paramount, formerly known as ViacomCBS (NASDAQ:PARA) Inc., has not provided any further details regarding the reason for D’Alimonte's departure or the search for a permanent replacement. The company's corporate headquarters is located at 1515 Broadway, New York, and it operates under the Television Broadcasting Stations industry.
The transition in Paramount's legal leadership comes at a time when the media industry is facing rapid changes and regulatory challenges. Paramount Global has a history of rebranding and restructuring, as evidenced by its former names including CBS Corp (NYSE:CBS_old) and Viacom Inc.
In other recent news, Paramount Global finds itself in the midst of a bidding war as multiple entities express interest in acquiring the company. Former media executive Edgar Bronfman Jr. and Bain Capital have considered a bid in the range of $2 billion to $2.5 billion for National Amusements, the controlling shareholder of Paramount. Skydance Media has also shown interest and recently increased its bid, however, the exact details remain undisclosed. Additionally, Hollywood producer Steven Paul is reportedly preparing a $3 billion offer for National Amusements.
Meanwhile, the trial of Archegos Capital Management's former leader Sung Kook "Bill" Hwang and his deputy Patrick Halligan has commenced. They face charges related to the firm's rapid failure in 2021 which led to significant losses for global banks. Hwang and Halligan have entered not guilty pleas and are expected to challenge the prosecutors' interpretation of market manipulation.
Lastly, Paramount's co-CEOs presented a restructuring initiative at the recent annual shareholder meeting. The plan aims to reduce costs by $500 million annually, considers the sale of assets, and explores a joint venture or partnerships for the Paramount+ streaming platform. These are recent developments in the ongoing story of Paramount Global's potential sale and Archegos' trial.
InvestingPro Insights
As Paramount Global navigates through executive changes and the evolving media landscape, investors can gain further context by considering key financial metrics and analyst insights. According to real-time data from InvestingPro, Paramount Global has a market capitalization of $11.28 billion, and while it has faced profitability challenges with a negative P/E ratio of -112.88, its Price / Book ratio stands at a low 0.32, potentially indicating undervaluation. Additionally, the company has maintained its dividend payments for 19 consecutive years, showcasing a commitment to returning value to shareholders amidst volatility, as evidenced by a 1.13% dividend yield.
InvestingPro Tips for Paramount Global highlight its position as a prominent player in the media industry, with a high shareholder yield and liquid assets surpassing short-term obligations. However, the stock's price has been quite volatile, with significant declines over the last month and six months. Analysts have revised earnings downwards for the upcoming period, yet they predict the company will turn profitable this year, providing a mixed outlook for potential investors.
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