The merger between Skydance and Paramount (PARA) is just weeks away from finalization, and a new report from The Wrap suggests that it may have been a longer and stranger journey than some might have expected. In fact, Apollo Global Management (APO) actually tried to get its foot in the door on seven different occasions. The revelation did just a bit of good for Paramount’s share prices, which were up modestly in the closing minutes of Wednesday’s trading session.
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The Skydance/Paramount merger has been somewhat controversial from its earliest days, and is actually still facing some potential litigation threat to this very day. But newly revealed Securities and Exchange Commission (SEC) filings reveal that Paramount reached out to over 50 different parties before ultimately going with Skydance.
We now know about the attempts that Apollo made, which turned out to be more than first realized. The reports also noted that Warner Bros. Discovery (WBD) was after Paramount for a lot longer than most realized at first but was ultimately squashed due to concerns that regulators might have gotten involved. Several private equity firms also reportedly expressed some interest.
Paramount Channels Up for Bid?
In a surprise move, reports noted that Kenneth Leon, a 4.4-star analyst with CFRA, upgraded Paramount shares from Hold to Buy and hiked the price target to $13 per share. The reason? Leon believes that Paramount may follow in Comcast’s (CMCSA) footsteps and either spin off or sell its cable operations. With linear television suffering in recent months, such a move would not be a surprise, even if Paramount has made no move in that direction as of yet.
Just to round things out, there are reports that the International Songwriting Competition (ISC) has a new connection with Paramount. It recently announced the “Screenshot Promotion,” which will put music in front of some of the biggest names in entertainment in a bid to get said music a shot at going into a very wide release. The top 10 finalists in the ISC will have their songs shared with over 1,000 licensing contacts and, potentially, picked up from there.
Is Paramount Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on PARA stock based on three Buys, seven Holds, and four Sells assigned in the past three months, as indicated by the graphic below. After a 21.4% loss in its share price over the past year, the average PARA price target of $12.60 per share implies 17% upside potential.
