PARAA - Paramount Global Voting-Stock Premium Suggests A Takeover Is Near
2024-04-03 09:00:00 ET
Summary
- Paramount Global - Class A voting shares have experienced a strong price advance vs. Class B units, suggesting takeover odds are high.
- A takeover/merger or asset breakup of Paramount is possible, while operating results have been improving beyond analyst expectations.
- A large short-interest position in PARA should support price, given the continuation of improving business profitability or appearance of new takeover proposals.
- The undervaluation argument to own PARA is getting louder with price approaching $10 a share.
The breakup and acquisition rumor mill for owners of the major CBS television network and Paramount Studios has been in overdrive for months. A low stock quote and business valuation are to blame. Paramount Global - Class A ( PARAA ) is the voting-share class actually witnessing a nice price advance since late 2023, far outstripping the weak price gains of the non-voting Paramount Global - Class B ( PARA ) class most of us own. What this may mean is Wall Street feels a takeover is likely. So, owning shares which actually have a say on any/each takeover proposal makes complete sense. For sure, with just 40.7 million voting class shares vs. 611.8 non-voting at the end of February , those considering an acquisition (or asset breakup) of Paramount are bidding up the Class A subset....
Paramount Global Voting-Stock Premium Suggests A Takeover Is Near