“Active Settlement Discussions” Underway; Paramount Stock (NASDAQ:PARA) Gains

While there are plenty of people out there hoping that entertainment giant Paramount (PARA) will not settle the 60 Minutes lawsuit with President Trump, one thing is quite clear: investors approve of the idea wholeheartedly. That is evidenced by the modest gains in Paramount shares in the closing minutes of Monday’s trading as word emerged that “active settlement discussions” are currently underway.

Reports noted that, on Friday, President Trump’s attorneys requested an extension in deadlines connected to the suit as discussions were, apparently, sufficiently ongoing to preclude any interest in forcing the issue. Further, both sides believe this to be the case, with court filings noting that “…good cause to extend the deadlines set forth in the table below exists because the Parties are engaged in active settlement discussions, including continued mediation.”

Paramount previously offered $15 million, which was still a pretty far cry from Trump’s requested $25 million and free air time. The air time in question, reports note, would be directed toward things like “veteran’s issues” as well as “the rise of antisemitism in American society.”

South Park Deal at Risk

And then, in another round of things Paramount absolutely did not need right now, there were signs suggesting that the deal to bring South Park to Paramount+ was also potentially jeopardized. South Park is one of Paramount’s biggest properties, and the $900 million deal that currently oversees its airing has another two years before its expiry.

A separate deal with Warner Bros Discovery (WBD) is set to expire this month, which features South Park airing on HBO Max, as part of a licensing deal made six years ago. Paramount clearly wants that property back in its own bailiwick, but with Skydance having the right to refuse large-scale deals—and this would indeed be a large-scale deal—that is leaving Paramount somewhat on the horns of a dilemma. Skydance believes that Paramount is offering too much money for South Park, but Paramount is convinced that South Park‘s name recognition, brand longevity, and current popularity merits a higher payout.

Is Paramount Stock a Good Buy Right Now?

Turning to Wall Street, analysts have a Hold consensus rating on PARA stock based on two Buys, eight Holds and five Sells assigned in the past three months, as indicated by the graphic below. After a 20.45% rally in its share price over the past year, the average PARA price target of $12.08 per share implies 0.92% upside potential.

See more PARA analyst ratings

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