It’s official. Entertainment giant Paramount Global (PARA) has parted ways with the Nielsen ratings system over contract terms.
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Paramount blamed Nielsen for the split, noting that the ratings service had “…severed our long-standing measurement partnership with its unacceptable demands, including substantial price increases that are inconsistent with the realities of a changing industry.”
For its part, Nielsen did not rule out a reconciliation with Paramount Global in the future. It said in a statement of its own that “…we look forward to working with Paramount on a new agreement.” Just what that agreement will look like remains to be seen.
But What About the Vice Presidential Debate?
The departure from Nielsen comes at an inopportune time for Paramount. Tonight is the vice-presidential debate, after all, between J.D. Vance and Tim Walz. There will likely be many intending to view the debate, but we may not be able to get an accurate count of just how many viewed thanks to the loss of Nielsen.
Word from Adweek suggests that there are already concerns about the accuracy of VideoAmp’s data. And while the vice-presidential debate may not pull quite so many viewers as the CNN debate—which has 51 million viewers—even half that would still be a coup.
Is Paramount Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on PARA stock based on four Buy, eight Hold and six Sell recommendations assigned in the past three months, as indicated by the graphic below. After a 14.66% loss in its share price over the past year, the average PARA price target of $12.43 per share implies 17.65% upside potential.
