SNEJF - Paramount Takeover Talks: Sony-Apollo Deal Closure Could Lead To Large Gains
2024-05-20 05:16:18 ET
Summary
- Paramount shares at $12-$13 trade far below the lowest price in the Sony-Apollo bid at $22.
- The major voting shareholder of Paramount is forced to raise cash to pay debts, which may lead to Paramount being sold.
- Sony has been interested in buying Paramount for a long time now.
- PARA shares are unjustly trading far lower than PARAA shares, which have the same economic rights.
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At the moment, I believe Paramount Global (PARA) shares (which are the Class B shares) are far depressed compared to the underlying value of all the company's assets. A non-binding offer by Sony and Apollo Global could lead to a deal taking the company private at $22 or more per share, rewarding new investors in PARA with massive gains compared to the current stock price of $12-$13. Existing investors who bought above $20 may or may not be rewarded, depending on the details of the Sony-Apollo offer. Longer out-of-the-money call options might win big if the Sony-Apollo deal proceeds at $22 per share or more....
Paramount Takeover Talks: Sony-Apollo Deal Closure Could Lead To Large Gains