PARAA - Paramount: Potential Rescue With Sony Bid
2024-04-19 14:30:00 ET
Summary
- Paramount Global has several deals to pursue, but the controlling shareholders are pushing for the deal unfriendly to shareholders.
- Sony is considering joining a modified $26 billion offer from Apollo Global Management, making the bid too good for Paramount to ignore.
- Paramount should return to solid profits as the DTC business cuts losses, making any deal less important.
- PARA stock has up to 100% upside from a $26 billion bid, valuing the equity potentially at $14 billion.
Paramount Global (PARA) (PARAA) remains in a bidding war where the controlling shareholder doesn't appear to want shareholders to benefit. The media company has again seen more interest for a buyout at a large premium, but the BoD isn't clearly pursuing the large buyouts. My investment thesis remains Bullish on PARA stock, but the hopes for a simple premium buyout are waning....
Paramount: Potential Rescue With Sony Bid