There has not been much to say about Paramount (PARA) as of late, now that the Skydance merger appears to be in lockstep. But new reports suggest that there may be plans shaping up with a greater focus on technology and some changes in advertising.
One immediate change was spotted by FE International CEO Thomas Smale, who noted that Shari Redstone—who formerly ran Paramount by running National Amusements, Paramount’s majority shareholder—“…has lost a lot of good faith with Paramount’s shareholders.” The Ellisons, the billionaire family who are now in charge, might be just what Paramount needs to get that trust back, Smale asserts.
And indeed, we have already heard about potential plans to change Paramount, pushing it into a “media and technology” company. New reports suggest that Skydance’s technical expertise—which has already produced some major new properties like The Walking Dead and Invincible—could be readily adapted to build off the massive slate of Paramount intellectual property. That would help it better compete with Netflix (NFLX) and draw more interest from advertisers, who will not only have a broader audience to work with but also more techniques to connect with them.
And More Content, Too
The good part about Paramount here is that there is frequently new content to bring up, and that will give Skydance a lot more to work with. For instance, it has expanded its lineup in the upcoming series focused on the life and death of child beauty queen JonBenet Ramsey, titled, JonBenet Ramsey. Emily Mitchell is now set to play the title role, backed up by Alison Pill, Owen Teague, and Garrett Hedlund.
Plus, Paramount+ looks to make it a September to remember, as several new shows are on their way in. Tulsa King, Frasier, and Colin from Accounts are all set to return for new seasons, while two new movies—Parallel and Apartment 7A, the prequel to Rosemary’s Baby—will make a stop as well. Throw in some new livestreams from the NFL and college football, and Paramount+ might be more of a competitor even without any new augmentation from Skydance.
Is Paramount a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on PARA stock based on three Buys, eight Holds, and seven Sells assigned in the past three months, as indicated by the graphic below. After a 24.64% loss in its share price over the past year, the average PARA price target of $12.13 per share implies 20.94% upside potential.
