DIS - Paramount: Deal Rumors Aside What About The Operations? Can The Company Turn A Profit?
2024-05-21 14:41:27 ET
Summary
- Paramount Global remains my worst investment, but I still believe in its potential for success.
- Paramount's "lack of scale" is not the reason for its underperformance as it spends about as much on content as industry leader Netflix.
- Paramount's loss last year was largely the result of one-off writedowns, both domestically and internationally. These losses will not repeat going forward.
- Paramount's streaming operation suffers not from lack of scale, but an abundance of overload waste, which may be alleviated under new management.
- The sports slate remains best-in-class, and CBS is still the leader in broadcast scripted.
Paramount Global ( PARA ) ( PARAA ) remains my worst investment. Let's just get that clear from the start. I said two years ago it was madness not to buy Paramount. That was wrong, wrong, wrong. The fact that I recommended against buying the new Warner Discovery at the same time, and heeding that warning saved a lot of money, makes me feel a little better, but not much.
And no, the fact that Warren Buffett made the exact same mistake as me doesn't help much, either. Mr. Buffett and I are about to part ways, anyway. He is now completely sold out of Paramount , while I am hanging in. Yes, I am still buying. Get all the ribbing out of your systems, and then read on....
Paramount: Deal Rumors Aside, What About The Operations? Can The Company Turn A Profit?