Paramount may narrow its path by engaging more players, says Barclays

Commenting on reports about Warner Bros. Discovery’s (WBD) possible interest in buying Paramount (PARA), Barclays analyst Kannan Venkateshwar said any potential deal, should one emerge, is “more likely about buying time through cost synergies” and for Warner management to run a bigger portfolio for a bit longer. However, “combining two of the most challenged assets across legacy media is unlikely to somehow transform the combination into a better company,” the analyst tells investors. The more players Paramount engages with, “the narrower its path may end up being in the absence of real progress,” added the analyst, who keeps an Underweight rating and $12 price target on Paramount shares.