PARA - Why Can't Paramount Stock Have a Hollywood Ending?
2024-05-06 10:15:00 ET
It seems as if Paramount Global (NASDAQ: PARA) (NASDAQ: PARA.A) shareholders can't catch a break. There are at least two parties looking to buy the meandering media mogul, but it's still somehow a market laggard. Paramount stock is trading 13% lower in 2024, off a blistering 44% over the past year.
The buyout interest puts a floor in the stock, but why is the ceiling shrinking? This isn't a stock. It's a trash compactor. Paramount has a lot to do before its brittle bones start to crack under the pressure. Let's size up where we are after a whirlwind few weeks of buyout activity. It's still not too late for this script to wrap up with a happy ending.
The first suitor to show up on Paramount's porch was David Ellison's Skydance. It makes sense. Ellison comes from financial royalty. Larry Ellison is his dad. However, the younger Ellison earned his keep in Hollywood. Skydance has helped produce some of Paramount's biggest hits in recent years including Top Gun: Maverick and some of the more recent installments in the Mission Impossible and Star Trek franchises.
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Why Can't Paramount Stock Have a Hollywood Ending?