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Paramount's CEO exit could weigh on Skydance deal: Analyst

Paramount (PARA, PARAA) is reportedly in advanced talks for its potential merger with Skydance, while the media company's CEO Bob Bakish is planning his departure. Third Bridge Group Sector Analyst Jamie Lumley joins Market Domination Overtime to discuss the outlook for this deal. Lumley highlights that the timing of the CEO transition "could potentially weigh on" whether the deal will go through. Examining Paramount's fundamental operations, Lumley notes that the company is trying to find the best way "to stabilize" its core business while also attempting to incorporate streaming revenue — emphasizing that whoever assumes the CEO role will have "a tough job" ahead. Regarding the likelihood of the deal going through, Lumley states, "It's tough to say." While the merger could potentially benefit shareholders, he notes that there has been "a lot of pushback" from regular shareholders. Lumley also expresses concerns that even if the deal proceeds, core challenges "could persist" given the absence of a "clear plan" to tackle these issues. When asked about potential regulatory concerns surrounding the merger, Lumley points out that the focus would be on what it means to "own and operate a network" — highlighting that "the ultimate ownership of CBS" would likely raise regulatory scrutiny. For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. Editor's note: This article was written by Angel Smith