While the Skydance / Paramount (PARA) merger is starting to look shaky, there were some signs that emerged recently that may have scuttled the whole thing outright. One such sign was an “11th-hour offer” that emerged from Project Rise Partners. The new offer was impressive, but Paramount is not even considering it, reports note, which raises some potential legal questions. The whole thing sent Paramount shares sliding fractionally in the closing minutes of Tuesday’s trading.
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The reports noted that Project Rise Partners’ offer was substantial, but word from Paramount itself noted that the offer showed up too late to matter. From the statement: “Project Rise Partners did not make a proposal during such period, nor during the prior seven-month sale process for Paramount. It is unclear what PRP’s objectives are; however, Paramount is bound by its agreement with Skydance Media and there will not be any engagement with PRP in contravention of such agreement.”
Yet word from Project Rise Partners’ lawyers brush that aside, and assert that Paramount was “obligated to consider its offer” since the offer was superior. With Skydance offering around $15 per share, and Project Rise offering $19 per share, it does look that way. And with a variety of forces arraying against the Skydance merger, we may ultimately see some change before it is all said and done.
Better Ads for Playoff Season
Meanwhile, the AFC Championship game recently concluded, and Paramount was ready. It brought out an array of new “live, shoppable ads”, which gave customers access to tools needed to buy products directly from the ad itself. Basically, while watching the game, viewers were able to turn to a second screen—a phone or tablet, generally—to access the CBS Sports HQ Store.
From there, viewers can shop for related items, particularly snacks and entertainment items, from a range of marketing partners. The whole thing put Shopsense technology to work, which Paramount used to great effect back during the CMT Music Awards as well as the MTV Video Music Awards. It put particular focus on “immediate fulfillment” and a “frictionless experience” as a way to deliver ads that translate directly into product sales. Paramount has not released any numbers as yet as to just how well they worked.
Is Paramount Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on PARA stock based on three Buys, seven Holds and five Sells assigned in the past three months, as indicated by the graphic below. After a 18% loss in its share price over the past year, the average PARA price target of $12.45 per share implies 12.62% upside potential.
