The deal between entertainment giant Paramount (PARA) and Skydance may be done now, but like we found recently with Sony, we are starting to hear more about the deals that ultimately did not go through for Paramount. Barry Diller recently gave himself a round of applause for ultimately pushing Skydance to make its play for Paramount. Investors were less than impressed, however, and sent shares down fractionally in Monday afternoon’s trading.
Diller, who had served at Paramount for around 10 years of his life, believed that there was a “symmetry” to him making a play for the company itself. He had actually made a play for the studio before, but lost to Sumner Redstone. But Diller also knew there was opportunity involved, and declared the pursuit, “…a duty rather than a desire.”
Further, Diller noted his attempt to pick up Paramount prompted Skydance to move harder to close the deal that ultimately won out. Diller, in a moment of levity, declared that Shari Redstone “…ought to send a nice pot of flowers or chicken soup” to demonstrate her appreciation at Diller’s apparent instigation. Yet, Diller also noted that the “hegemony” in Hollywood that so heavily featured Paramount has passed, thanks to the rise of unexpected entertainment firms like Apple (AAPL).
Deals Running Out
Speaking of deals running out, today is the last day to get access to 50% off Paramount+ for those willing to pay for a year’s worth up front. It is still available with the code FALL50, and it should be interesting to hear how many more subscribers Paramount pulled in this quarter as a result. Or, better yet, how many will stick around once the discount period expires. Either way, it is a sound tactic in the face of a difficult economy.
Just to round it out, Paramount is also working with children’s apparel retailer Andy & Evan on a new line of SpongeBob SquarePants merchandise. With SpongeBob now in its 25th year, the new line of clothes will feature everyone’s favorite pineapple-dweller on everything from hoodies to bomber jackets and beyond.
Is Paramount Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on PARA stock based on three Buys, eight Holds and seven Sells assigned in the past three months, as indicated by the graphic below. After a 17% loss in its share price over the past year, the average PARA price target of $12.13 per share implies 17.48% upside potential.
