The news probably should have had a better impact on entertainment giant Paramount (PARA), but a new distribution arrangement that will likely get more content out to more screens did little to help its share price. Indeed, Paramount shares were down nearly 2% in the closing minutes of Thursday’s trading session.
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Many are looking forward to the somewhat unexpected return of the Gladiator series with Gladiator II‘s arrival in November. And when it does, thanks to a new arrangement between Paramount and Sony Pictures International (SONY), Gladiator II will hit German theaters as well.
As it turns out, Paramount let go of its theatrical marketing and distribution operations as part of its cost-cutting measures in the wake of its merger with Skydance. So, it needs to turn to distributors in a bid to get its content into theaters.
Redstone Takes a Hand in News
Meanwhile, Shari Redstone—who was perhaps best noted for being a major issue in the dealmaking process a few months ago leading up to the Skydance merger deal—is starting to make her presence felt a little more than in the past. She seems to be targeting the firm’s news operations.
Redstone called for more conservative hires at CBS News, expressing deep concern about CBS’ increasingly left-leaning slant, noted a New York Post report. Redstone even went so far as to send clips from other news outlets that she found more palatable, calling particular attention to a news report focused on Israel following the death of seven aid workers aired during an episode of Face the Nation.
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, six Holds, and four Sells assigned in the past three months, as indicated by the graphic below. After a 13.73% loss in its share price over the past year, the average PARA price target of $12.67 per share implies 22.89% upside potential.
