I hate to say it, but if you were hoping for a quick end to the Paramount (NASDAQ:PARA) sales saga, you will be sorely disappointed. In fact, new reports suggest that other buyers are coming in and looking to make a play for the beleaguered studio. The drama is attracting investors, though, as shares were up fractionally in Friday afternoon’s trading.
While the special committee approved Skydance’s merger terms, the approval train seems to have stopped right outside Shari Redstone. Redstone, who controls Paramount through National Amusements, is said to find the latest offer distasteful as it means less of a payday for her and more of a payday for literally everybody else. But as it turns out, Redstone may have a reason to hold off after all, as more suitors are stepping up.
Tequila Moguls and Baby Geniuses
Among the latest offers to come in include producer Steven Paul and tequila mogul John Paul DeJoria, who is also known for co-founding Paul Mitchell’s hair care product line. Paul is perhaps best known for the “Baby Geniuses” franchise, which Roger Ebert once referred to as a film so “unpleasant” that it “…achieves a kind of grandeur.” Meanwhile, DeJoria is primarily interested in Paramount for the news channels, which he hopes to “redirect” to be “…a positive influence on everybody.”
With that in mind, DeJoria may want to take his case to Sony (NYSE:SONY) and Apollo Global Management (NYSE:APO), who seemed to be interested in everything but the news channels. However, there are signs that DeJoria is instead working with Paul here as part of a larger coalition.
What Is the Projection for Paramount Stock?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on PARA stock based on two Buys, eight Holds, and seven Sells assigned in the past three months, as indicated by the graphic below. After a 26.56% loss in its share price over the past year, the average PARA price target of $12.50 per share implies 4.04% upside potential.
