Paramount (NASDAQ:PARA) Layoff Fallout Continues

The Paramount (PARA) layoffs hit the entertainment giant hard, and another bit of news has come to light about what this means for operations going forward. And I have bad news for country music lovers, as CMT—Country Music Television—is on the list. Investors, meanwhile, took it well, and sent shares up fractionally in Thursday’s trading.

The channel lost several members, particularly those involved in music and talent. Two senior managers and a director were lost on that front, along with a director of production, a senior producer, and the vice president of production, Quinn Brown. Meanwhile, several vice presidents were apparently spared the hammerblow.

Meanwhile, new word from Variety suggests that there is another potential loss ahead for Paramount: Nielsen. Paramount is apparently in the middle of a contract dispute with the TV ratings juggernaut, and is also close to throwing over the service altogether. Paramount is also telling its advertising sales staff that it is “…very close to ending its reliance on Nielsen data,” a point which makes some sense, in light of the idea that linear television in general is in open decline.

Running On Empty to a Cash Dividend

With linear television in such a state, it is not much of a surprise to see media names like Paramount staging layoffs. Paramount is not the only one engaging in such behavior; Disney (DIS) has also been seen paring back staff in a bid to cut costs. While Disney has the parks to supplant its operations, it still has a substantial exposure to television, and that in turn is prompting deep concern over the state of television as a whole.

But as dire as things are, that is not stopping Paramount from putting out a cash dividend. Class A and Class B shareholders alike are both in line for a cool nickel each, a full $0.05 for those who hold Paramount stock on December 16, 2024, and payable January 2, 2025.

Is PARA Stock a Good Buy Right Now?

Turning to Wall Street, analysts have a Hold consensus rating on PARA stock based on four Buys, eight Holds and six Sells assigned in the past three months, as indicated by the graphic below. After a 15.41% loss in its share price over the past year, the average PARA price target of $12.43 per share implies 17.04% upside potential.

See more PARA analyst ratings

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