2024-02-01 13:30:00 ET
Summary
- Paramount Global is potentially moving closer to a sale, with multiple bids from Skydance Media and Byron Allen.
- Allen's bid seems to offer a better strategic fit, considering merging his media assets with Paramount's cable and broadcast networks.
- The market remains uncertain about the outcome of the possible deals, complicated by Shari Redstone's controlling stake.
- I explain why PARA could remain materially undervalued for some time. Also, there's no guarantee that any of the deals could close.
- Investors attempting to chase potential upside could end up getting hurt. They should have added aggressively in November 2023, not now.
I last updated Paramount Global ( PARA ) investors in early December, as I first discussed about initial stages of the sale rumors. While I didn't expect the rumors to dissipate, I didn't anticipate them gaining significant traction over the past two months....
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Paramount: Better To Avoid Chasing Deal Hype And Getting Burned