We’ve been following the potential acquisition of media company Paramount (NASDAQ:PARA) for some time now. First by Skydance Media, then by the Sony (NYSE:SONY)/Apollo Global Management (NYSE:APO) coalition, and we even spared a little time for Byron Allen, who seemed to be an afterthought pretty much everywhere else. Now, a new report has emerged that calls the whole thing a “sorry situation,” and investors seem to agree. Paramount shares are down nearly 3% in Wednesday afternoon’s trading.
The latest word comes from Puck News founding partner William Cohan, who noted that he happens to be a writer himself and that a good character drama is always worthwhile. But Paramount’s sale is shaping up to be a disaster, based on Cohan’s word. In fact, he noticed the same thing we’ve been seeing all along – none of this drama has done Paramount’s share prices any good. The stock ‘…continues to tick down,” as Cohan put it, and that’s what we’ve seen right up to this moment.
Carrying On Regardless
We also knew that “no sale” was an option, and Paramount is making moves to keep its operations going as if nothing happened. After all, any sale would have to pass regulatory muster, and with the Federal Trade Commission (FTC) stuck in “activist” mode, getting that regulatory nod would have been a tough call.
Meanwhile, Paramount is brokering deals with Jazwares, one of the biggest names in toys around, for several merchandise tie-ins on platforms ranging from “Avatar: The Last Airbender” to even “Yellowstone.” There’s also a recently minted carriage deal that will keep Paramount content—including Paramount+—available on Charter Spectrum (NASDAQ:CHTR). Thus, even without a sale, Paramount will be able to carry on as its own entity.
Is Paramount Global a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on PARA stock based on two Buys, eight Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. After a 25.42% loss in its share price over the past year, the average PARA price target of $12.27 per share implies 4.96% upside potential.
