I think we were all a little surprised when Project Rise Partners emerged to challenge the merger between entertainment giant Paramount (PARA) and Skydance. But now, Skydance is fighting back against Project Rise Partners, and the word “fraud” has already come up. Investors were not happy to see it, either, as shares slid over 4% in the closing minutes of Tuesday’s trading.
In fact, Skydance’s legal operations are already taking aim at Project Rise Partners, and declaring that the upstart bidder is trying to “…hijack the regulatory review process,” reports note. Project Rise Partners emerged right at the end of the 45-day “go-shop” period that Paramount and Skydance had. But since the offer was apparently so close to the end, this was not enough for Paramount’s board to formally recognize the offer, leaving Skydance and Paramount with a binding contract to go through.
Skydance, for its part, asserts that Project Rise Partners’ bid—which was both “…belated and unserious,” the reports noted– was little more than a stall tactic for a lawsuit to go through the Delaware Court of Chancery. In fact, Skydance asserted, Project Rise Partners “…fraudulently misrepresented itself…” based on Skydance’s gathering of “overwhelming evidence” to assert such a point.
Festival Fun
Meanwhile, on a much less serious note, Paramount is headed for Austin, Texas, and the South by Southwest (SXSW) film festival. There, it will establish the Paramount Plus Lodge at Rainey Street’s Clive Bar. Those who go in, and have the appropriate badges, will be able to get in on a range of interactive experiences geared toward promoting various Paramount properties.
Attractions devoted to series like Yellowjackets, Dexter:Original Sin, and Star Trek: Strange New Worlds will all be on hand. Plus, for those with the appropriate credentials, there will even be exclusive swag giveaways on hand. That is all the more reason to check out the proceedings for anyone with SXSW badges.
Is Paramount Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on PARA stock based on two Buys, six Holds and five Sells assigned in the past three months, as indicated by the graphic below. After a 1.14% rally in its share price over the past year, the average PARA price target of $12.50 per share implies 8.98% upside potential.
Questions or Comments about the article? Write to editor@tipranks.com