There’s no doubt that media company Paramount (NASDAQ:PARA) has faced its share of troubles over the last few months. Linear television is in open decline, its streaming proposition isn’t doing all that well, and any attempt to sell the company has ended in disaster. Now, news about new job cuts coming soon isn’t helping matters, and Paramount shares were down modestly in Wednesday afternoon’s trading.
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The company’s three CEOs—and one would wonder if the cutting shouldn’t have started there instead—announced that several employees would be let go as part of a larger, earlier-announced effort to save $500 million. The cuts come from an “unacceptable” decline in profits, which were down 61% from 2018 to 2023 despite revenue being up about 13% in that time frame.
Further, Paramount is planning to sell some assets, though it’s unclear just which assets will be sold. It’s also unclear how many jobs will be lost or when people can start watching for the pink slips to roll out.
Bankers Already Hired
The upcoming Paramount fire sale looks like it’s about to go through, as the firm has already engaged bankers. Reports suggest that the Black Entertainment Television (BET) network will likely be up for sale, as it has been mostly working apart from Paramount for quite some time anyway. But it’s not just planned cuts; Paramount is working with “potential partners” on an international stage that will bring in new revenue, reports suggest. Some of these moves might also be applicable to its U.S. operations.
Is Paramount a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on PARA stock based on two Buys, seven Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. After a 36.11% loss in its share price over the past year, the average PARA price target of $11.68 per share implies 17.27% upside potential.
