Talks of a potential deal for media giant Paramount (NASDAQ:PARA) are still rolling along, but where exactly it’s rolling to, or what its final form will be, no one’s particularly sure. With multiple suitors vying for the role of Paramount’s new owner, including Byron Allen, who apparently is being left out of the talks altogether based on the latest reports, it’s clear something is likely to happen, and it might be huge when it does. For now, the waiting is proving the hardest part, and Paramount shares are down nearly 8% in Tuesday afternoon’s trading.
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Trying to pin down current majority shareholder Shari Redstone on the deal is difficult at best. Reports suggest that Byron Allen’s bid is being largely ignored because no one’s all that sure he can back it up, despite his repeated assertions to the contrary. Meanwhile, Skydance Media’s bid made a lot of traction but ultimately fizzled with its exclusivity period as shareholders threatened outright revolt if Redstone sold out and left them swinging.
Meanwhile, the Sony (NYSE:SONY) bid looks more credible, but a closer look suggests that it will be less a payday for shareholders and more a payoff for creditors. And in the background, all the while, rides the ever-looming threat of an activist Federal Trade Commission in an election year, snapping at every bit of M&A like a shark in a tank full of beef soup.
Paramount Returns to Its Roots
And while this fracas has left investors feeling tired and jittery, there’s one bright spot as Paramount returns to its roots with a new project in Brooklyn: a summer movie series shown outdoors in several locations. Fort Greene, McCarren, Prospect Park, and Coney Island will all benefit from the “Paramount+ Movie Nights” free outdoor film series, sponsored by Paramount and Brooklyn Magazine.
Shows start at sunset daily and include such fare as “Zoolander,” “Empire Records,” “Clueless,” and 13 more at the various locations. In fact, Coney Island will play host to “a surprise new feature film to be announced” on July 11, a week after the dust dies down from the annual Nathan’s hot dog eating contest.
Is Paramount a Buy or Sell Stock?
Turning to Wall Street, analysts have a Hold consensus rating on PARA stock based on three Buys, 10 Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. After a 19.56% loss in its share price over the past year, the average PARA price target of $12.57 per share implies 3.71% upside potential.
