2024-07-03 16:41:46 ET
Summary
- Paramount Global is involved in multiple deal rumors, including the primary Skydance Media deal, but controlling shareholder Shari Redstone may not prioritize common shareholders' interests.
- The Skydance Media deal could potentially be finalized this weekend and would only offer non-controlling shareholders a deal price of $15 for 50% of shares.
- Paramount+ streaming service is hiking prices to offset losses, with a potential joint-venture model being explored to increase scale and compete with other streaming services.
- Paramount Global stock is cheap when trading at $10, but shareholders are unlikely to obtain a premium deal with even $15 undervaluing Paramount.
Every other day, Paramount Global ( PARA , PARAA ) gets another rumor or confirmed report on a new deal. The problem for shareholders is that Shari Redstone, controlling shareholder, appears to have no real interest in a deal in the best interest of common shareholders. My investment thesis is Bullish on Paramount due to valuation, but doubts regarding a merger are elevated....
Read the full article on Seeking Alpha
For further details see:
Paramount: Deal Merry-Go-Round