The fallout is now beginning with the conclusion of the Paramount (NASDAQ:PARA) and Skydance deal, and it’s already starting to cost some jobs. Yet investors don’t seem particularly fazed by this and sent shares of the media company up modestly in Wednesday afternoon’s trading.
The first blow to Paramount came when Ingrid Ciprian-Matthews left. For those not immediately familiar with the name, Ciprian-Matthews is a 30-year veteran of CBS News who became president last year. Likely seeing the handwriting on the wall, Ciprian-Matthews packed up her career and left.
While Ciprian-Matthews didn’t reference the Paramount/Skydance deal in her departure memo, she did note that “…this is the right time to step away.” With an election poised to hit in just four months and, by some accounts, the most hotly-contested election in decades, if not centuries, this may have been the worst time for CBS News to lose a major figure. However, Ciprian-Matthews isn’t leaving altogether and will now be a “senior editorial adviser” instead.
But That’s Not All…
That was just the start of Paramount’s potential near-term labor troubles. Word came out from the company’s three CEOs that “business as usual” would reign at Paramount…at least until the layoffs start. Yes, the layoffs are still in play despite the merger, but given that the merger won’t close until the first half of 2025—and that assumes no government challenges intervene from a possibly completely changed government in the meantime—there could be layoffs before that happens.
Then, commentary emerged about the recent shutdown of MTV News, as writers at TechDirt declared this the “…latest round of brunchlord dysfunction.” TechDirt went on to declaim that the Peter Principle was well at work, in which employees tend to fail upward, and that streaming content is getting “…worse and worse…” despite Paramount progressively “…charging more and more money…” for it.
Is Paramount a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on PARA stock based on three Buys, six Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. After a 29.65% loss in its share price over the past year, the average PARA price target of $12 per share implies 3.23% upside potential.
