So remember when entertainment giant Paramount (PARA) pared back its diversity, equity and inclusion (DEI) policies a while back? That did not sit well at all with employees, who delivered a letter to Paramount’s top brass explaining why this was a bad idea. Investors were reasonably pleased, meanwhile, and sent shares up fractionally in the closing minutes of Wednesday’s trading.
The surviving employees of Paramount’s last round of layoffs dispatched the letter to the company’s three CEOs, detailing their dismay at the loss of DEI. Indeed, it was quite a fiery letter, including phrases like “…we are extremely disappointed—but not surprised—by the senior leadership team’s decision to roll back our commitment to DEI.”. Also included was “..capitulation reflects the profound hypocrisy…” and “…committing to the erasure and exclusion of those very same diverse communities.”.
Perhaps the highlight of the letter, if you can call it that, was when Paramount employees accused management of “…continuing to kiss the ring and pay off mob bosses.”. With such phrasing in mind, it is likely no surprise that the employees that penned the letter were, at last report, anonymous.
A Focus on Results
As for Paramount’s advertising divisions—which have come under fire thanks to the increasingly obsolete nature of television itself these days—new reports suggest it is focusing more on results, in the form of “outcome-based measurement.” While such measurement systems have done well on digital media in the past, Paramount wants to put these to work in linear and CTV options as well.
The move is daring enough, especially given downward trends in viewership in the recent past. But being able to demonstrate results may well give linear television new life when it comes to advertisers. While linear television simply does not have the same measurement tools available that digital media does, some new technologies are poised to step in and potentially give the linear market access to a whole new breed of tools. This could get advertisers interested once more, and potentially, save the linear television market.
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 12.08% rally in its share price over the past year, the average PARA price target of $12.50 per share implies 8.65% upside potential.
