Shares of Paramount Global (NASDAQ:PARA) were standout performers among Communication Services stocks today after surging more than 14% at the time of writing. This spike in stock value came amid fresh talks about a possible sale of the company. According to Matthew Belloni of Puck News, David Ellison’s Skydance Media is showing interest in Paramount’s assets. Given Skydance’s solid financial backing and a lower likelihood of regulatory snags compared to other media giants, this potential deal is catching eyes.
Skydance isn’t new to the Paramount scene; it’s been pivotal in major Tom Cruise projects, including the “Mission: Impossible” series and the “Jack Reacher” film and TV adaptations. According to Belloni, though, it’s still early, and no official sales process has been started. Furthermore, one potential scenario includes Skydance and RedBird Capital teaming up to acquire a majority stake in Paramount’s parent company, National Amusements.
Is PARA a Buy or Sell Stock?
Turning to Wall Street, analysts have a Hold consensus rating on PARA stock based on five Buys, six Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. Despite a 5% decline in its share price over the past 12 months, the average PARA price target of $14.41 per share implies 16.2% downside risk.
