Normally, when a company is on the verge of getting bought out, its stock tends to surge. But that’s not the case for entertainment giant Paramount (NASDAQ:PARA), as reports note it’s being eyed for a takeover, and shares are down fractionally in Wednesday afternoon’s trading.
While Wall Street is looking at Paramount with disapproval these days, searching for signs of profitability to come out of the whole streaming model concept, one group is looking to Paramount for a potential new deal. Skydance Media is reportedly considering an all-cash offer to pick up Paramount, or rather its parent company, National Amusements.
Skydance’s CEO, David Ellison, is looking to pull in some high-powered help to finance the deal: his father, Larry Ellison. Should the purchase go through, Paramount would be folded into Skydance. The talks are still in extremely early stages, reports note, and nothing may come of it.
A Potential Seismic Shift
If the name “Skydance” sounds familiar to you, you’re likely connecting it to the blockbuster series “The Walking Dead.” It was also the primary investor of several major new releases, including “Top Gun: Maverick,” “Reacher,” and the latest rounds of “Mission: Impossible” and “Transformers.” It’s also done quite a bit of work in virtual reality lately, and having Paramount’s incredible portfolio of intellectual property in the hands of experienced developers could be the kind of catalyst that turns the whole game on its ear. Of course, we’ll have to wait to see how it all boils down, but this could be big.
What is Paramount Global’s Stock Target?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on PARA stock based on two Buys, six Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. After a 27.3% loss in its share price over the past year, the average PARA price target of $14.27 per share implies 1.06% upside potential.
