So while the news division of entertainment giant Paramount Skydance (PSKY) is undergoing a seismic shift, Paramount also made a move that probably should have been expected, but is actually quite new. Paramount opened up Paramount Games Studio, an organization devoted toward video game production at the studio. Oddly, investors were not happy here, and sent Paramount shares down nearly 4% in the closing minutes of Friday’s trading.
The new report from Variety suggested that Paramount Games Studio would serve as “…a unified gaming studio” that combines Skydance Interactive and Skydance New Media with Paramount’s extensive lineup of intellectual property. Previously, Paramount licensed its IP to other game studios to handle production.
The studio has two titles in development right now: Marvel 1943: Rise of Hydra, and a Star Wars game that has no title yet, a collaborative affair with Disney’s (DIS) Lucasfilm. Another title will be announced later today at the Summer Game Fest event. This move makes particular sense as Warner Bros. Discovery (WBD) already has a gaming division, and if the merger between Warner and Paramount goes through, Paramount will need to accommodate that content as well.
Speaking of the News Division…
Reports out at Paramount suggest that CBS News personality and 60 Minutes alum Lesley Stahl has new agency representation, possibly ahead of an upcoming firing or departure. With Scott Pelley recently fired, and most of CBS News in turmoil ahead of the potential merger and acquisition of CNN, some are starting to wonder: when does David Ellison himself get involved?
Reports suggest that Weiss and new executive producer Nick Bilton are looking for more specialists and fewer generalists on the show to offer more authority and authenticity, but they are running off talent with decades of experience in the process. And some are beginning to wonder if Ellison himself is looking to turn 60 Minutes into the next Dateline NBC: a diminished TV operation, but a big deal on YouTube and podcasts.
Is Paramount Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on PSKY stock based on one Buy, four Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 10.4% loss in its share price over the past year, the average PSKY price target of $11.29 per share implies 9.78% upside potential.
