PARAA - Paramount: Deal Merry-Go-Round

2024-07-03 16:41:46 ET

Summary

• Paramount Global is involved in multiple deal rumors, including the primary Skydance Media deal, but controlling shareholder Shari Redstone may not prioritize common shareholders' interests.
• The Skydance Media deal could potentially be finalized this weekend and would only offer non-controlling shareholders a deal price of $15 for 50% of shares.
• Paramount+ streaming service is hiking prices to offset losses, with a potential joint-venture model being explored to increase scale and compete with other streaming services.
• Paramount Global stock is cheap when trading at $10, but shareholders are unlikely to obtain a premium deal with even $15 undervaluing Paramount.

Every other day, Paramount Global ( PARA , PARAA ) gets another rumor or confirmed report on a new deal. The problem for shareholders is that Shari Redstone, controlling shareholder, appears to have no real interest in a deal in the best interest of common shareholders. My investment thesis is Bullish on Paramount due to valuation, but doubts regarding a merger are elevated....

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