The Paramount (PARA) merger drama with Skydance is not over yet. The go-shop period to receive other offers has less than a week to go, and one more potential suitor is coming back for another pass, according to a Wall Street Journal report. The news was a huge boost to Paramount, as shares of the media company were up nearly 8% in Thursday afternoon’s trading.
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This time, it is Edgar Bronfman coming back and preparing a bid to land Paramount’s parent company, National Amusements. Bronfman is best known for his time with Seagram and his time running Warner Music Group (WMG). While there is no formal bid yet from Bronfman, one is expected within the next few days.
Of course, such a deal may not go over well with investors. Earlier attempts to buy National Amusements directly prompted ire from shareholders who held both Class A and Class B shares, as they were often left out in the cold on such a decision. So, a similar move from Bronfman might engender the same resistance unless suitable provisions are made.
Executives Abandoning Ship
Even after the layoffs hit Paramount, there are some executives who simply do not want to stay on. Recently, one such executive came to light: Sabrina Caluori. Caluori was executive vice president for kids and family marketing for both Nickelodeon and Paramount+. This comes not long after a similar departure from Paramount+ and Showtime chief marketing officer Michael Engleman. Caluori served a three-year stint at Nickelodeon and then, in 2022, got elevated to her current position, which means she’s been at that level for about two years.
Is Paramount Global a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on PARA stock based on three Buys, seven Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. After a 24.44% loss in its share price over the past year, the average PARA price target of $12.07 per share implies 8.59% upside potential.
