While most of us are still focused on the news that media company Paramount (NASDAQ:PARA) could get sold to somebody, somewhere, for some price, there is the possibility to consider that it may not get sold at all. And to that end, Paramount is building on a current partnership with none other than Amazon (NASDAQ:AMZN). The move didn’t impress investors, however, as shares ticked down fractionally in Thursday afternoon’s trading.
The latest reports suggest that Paramount is talking to Amazon about stepping up the connections between the two media operations, specifically about including “bundled sales of channels.” One set of discussions also included advertising talks. This isn’t the first time we’ve heard about Paramount looking to branch out in streaming; it recently had conversations with Comcast (NASDAQ:CMCSA) about a streaming operation that would see both companies’ content under one roof.
But Paramount’s Amazon talks have a little extra edge to them, as Paramount+ is already one of the leading choices on the Amazon Channels store. Further, Paramount is a key supplier of content to Amazon Prime Video itself, producing both “Jack Ryan” and “Reacher.”
Shaking Up the Schedule
Meanwhile, Paramount is shaking up the schedule on its own streaming app, with several shows getting renewed or canceled outright. The shakeup is substantial; the “Frasier” revival is getting a second season, and “SkyMed” will be back for season 3. “Star Trek: Strange New Worlds” is getting a fourth season, and “Dora” will be back for season 2, as will “Lioness.” However, “Evil” is out, as is “Star Trek: Lower Decks.” “Seal Team” will shutter this year, as will “Star Trek: Discovery.” That’s a lot of ground getting moved under subscribers’ feet, and it’s easy to wonder what will follow to replace the losses.
Is Paramount a Buy or Sell Stock?
Turning to Wall Street, analysts have a Hold consensus rating on PARA stock based on three Buys, 10 Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. After an 18.31% loss in its share price over the past year, the average PARA price target of $12.64 per share implies 0.96% upside potential.
