It is clear that some are deeply, deeply concerned about any kind of settlement between media giant Paramount (PARA) and President Donald Trump. Jake Tapper recently came out with some remarks about just how bad this would be, and investors did not disagree. Investors sent shares down nearly 2% in the closing minutes of Friday’s trading.
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Jake Tapper, a CNN personality, noted that Trump’s lawsuits against media “…represent…a dangerous escalation.” Should Paramount agree to settle, that would represent a “flag of surrender” that would ultimately “cripple” Paramount. Tapper went on to declare that any settlement would likely be done to pave the way for the Paramount / Skydance merger.
That in turn, Tapper declared, made it clear a settlement was “only about the deal,” and that Shari Redstone would be “diminish(ing) the brand and value of 60 Minutes, which they claim to admire and want to own.” Tapper also asserted that Redstone “…is not concerned about her legacy, democracy or the work we do.”
Razing the Live Stuff
As if Tapper’s tirades were not trouble enough, Paramount is also pulling back on live events ahead of the Skydance merger, noted an exclusive report from the Hollywood Reporter. A recently-obtained staff memo declared that “we look to reimagine and optimize our events slate going forward,” a move which resulted in several events being simply removed from the rotation.
In fact, several major events have been “paused” for now, including such events as the MTV Europe Music Awards, the Nickelodeon Kids’ Choice Awards Mexico…and the CMT Music Awards. The VMAs and the Kids’ Choice Awards in general, however, are set to go on as planned. It is unclear when Paramount will make the necessary changes it intends, though it becomes easy to wonder how many of these awards will actually exist in 2025.
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, seven Holds and five Sells assigned in the past three months, as indicated by the graphic below. After a 16.84% loss in its share price over the past year, the average PARA price target of $12.55 per share implies 18.06% upside potential.
