Media giant Paramount (PARA) might have had troubles enough already with the Federal Communications Commission (FCC) and a potential lawsuit, or several. But now, the FCC may be taking aim at Paramount once more over a completely different issue: its diversity, equity and inclusion (DEI) policies. This newest threat left investors comparatively unfazed, and shares ticked up fractionally in the closing minutes of Thursday’s trading.
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This time around, the Center for American Rights has taken aim at Paramount, turning to the FCC to look into diversity policies at the media giant. Specifically, the Center for American Rights took aim at Paramount’s reality television offerings, suggesting that “quotas” for participation in reality shows, particularly by “people of color,” might be a violation of legal standards.
Paramount, for its part, did not comment on the Center for American Rights’ letter. And given that the FCC is already planning to look into Comcast (CMCSA) over its own DEI policies, it stands to reason that Paramount may find itself on a similar hot seat in the not too distant future. This is especially true given that Paramount is already under FCC scrutiny ahead of its merger with Skydance.
…About That Merger….
Is the merger doomed? That is the question many are asking in both Hollywood and in the broader investment community. And they ask with good reason. After all, the merger, which was agreed to months ago, is still in a kind of limbo right now as multiple lawsuits have emerged and await resolution. Throw in the government’s likely involvement, a lawsuit from a sitting president, and a host of other issues, and it would be reasonable to think that, maybe, this is not the done deal some thought it was.
There is simply no way to know, as yet, how this will all turn out. But the point remains that we may be watching a story that developed months ago take months more—and maybe years—to continue developing. There are simply too many factors working right now to suggest that this will reach a swift conclusion.
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, one Hold and three Sells assigned in the past three months, as indicated by the graphic below. After a 0.91% loss in its share price over the past year, the average PARA price target of $12 per share implies 4.76% upside potential.
