WBD - Paramount: The Market Does Not Buy Byron Allen
2024-02-01 19:50:39 ET
Summary
- Paramount Global's share price has been underperforming due to declining linear TV viewership and a lack of scale in their streaming business.
- Allen Media Group has made an offer to acquire Paramount, representing a 50% premium to the last closing price.
- The estimated Sum-of-The-Parts value of Paramount Group is around $20 billion, more than double the current market price.
Intro
Paramount Global ( PARA ) is one of the leading media groups in the US. The Company owns the CBS broadcast network, several Cable TV networks, a movie studio and a direct-to-consumer content distribution business. The share price of Paramount has been underperforming due to declining linear TV viewership and an apparent lack of scale in their streaming business. According to our estimates, Paramount trades at a steep discount to the conservatively assessed value of different parts of the business....
Paramount: The Market Does Not Buy Byron Allen