2024-03-22 13:15:46 ET
Summary
- The PARA slump continues, as recovery prospects of its slashed dividends remain out of reach amid rapid declines in linear TV and intensifying competition in DTC streaming.
- PARA has been selling non-core assets in combination with cost cuts to raise cash. More recently, PARA has been stepping up discussions on a potential sale of the entire company.
- In the latest news, Apollo has offered $11 billion for Paramount Pictures after dropping previous plans to acquire PARA parent, National Amusements.
- While the market's response highlights a lack of confidence the deal will materialize, a deeper dive into PARA's history of prospective buyers highlights a deeper conundrum.
Paramount Global stock ( PARA / PARAA ) has fallen significantly over the past year. In addition to its business' inherent sensitivity to secular declines in linear TV and intensifying competition in the capital-intensive direct-to-consumer streaming business, much of PARA's pullback over the past year resulted from its slashed dividends . This was a huge setback for the stock's income-focused investor base....
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The Apollo Proposal Highlights Paramount Global's 'Fight Or Flight' Conundrum