Good news emerged for entertainment giant Paramount Skydance (PSKY), as the person who allegedly leaked the upcoming release of Avatar Aang: The Last Airbender has been arrested. The damage may already have been done, however, as investors still sent shares dropping nearly 1.5% in the closing minutes of Tuesday’s trading regardless.
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Reports note that Singaporean police arrested a 26-year-old man who allegedly accessed a server where the completed film was being kept, and then started distributing the movie online himself. Authorities found a copy of the movie on his electronic devices, though at this point, he might well have downloaded it himself from any of a dozen other places.
If found guilty, the man could face up to 10 years in jail and a fine of up to $50,000. The film was originally slated for a theatrical release, but then got bumped down to a streaming release on Paramount+ this October. This move reportedly led to the man’s decision to “troll a little bit” once he landed a copy, reports note.
Ellison Responds
Meanwhile, new reports emerged around David Ellison’s response to Warner Bros. Discovery (WBD) shareholders approving the merger deal. Not long after the news came through, Ellison offered up a memo to Paramount staff which welcomed the news.
Part of the memo was a direct call to action among staff, who are likely convinced their jobs will be at risk from the merger going through. Ellison noted, “Collectively, these achievements reflect not only the strength of our portfolio, but the talent, creativity and commitment of our people. The months ahead will be both busy and exciting as we work to close the transaction and launch the combined company. I am deeply grateful for everything you are doing and proud of what we are building together.”
Is Paramount Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on PSKY stock based on five Holds and five Sells assigned in the past three months, as indicated by the graphic below. After a 9.87% loss in its share price over the past year, the average PSKY price target of $11.38 per share implies 8.08% upside potential.
