With the Paramount (PARA) merger drama now largely settled in favor of Skydance, there is an unexpected point to consider: Pluto TV. Pluto TV is Paramount’s entrant in the free ad-supported television (FAST) platform market, and some are starting to wonder if the media giant may sell it off. That, coupled with a new soccer deal, is sending Paramount shares up nearly 2% in the closing minutes of Wednesday’s session.
Some have wondered if Paramount would get rid of Pluto TV altogether to focus on its streaming arm, Paramount+. However, Pluto TV could actually fit well in the “tech hybrid” strategy that Skydance is looking to use, according to a report from The Wrap. While Paramount has been selling off its assets, Pluto TV is not exactly underperforming.
In fact, it is routinely bringing in more than it cost initially; Viacom, Paramount’s predecessor, bought Pluto TV back in 2019 for $340 million in cash. Today, it brings in around $1 billion annually. Some even refer to it as an “…underutilized asset” that could fit nicely into some of Skydance’s own plans. Thus, the notion that a cash-strapped and heavily-indebted Paramount would sell Pluto TV might not go over so well.
A New Soccer Deal
Meanwhile, the notion of sports continues to provide value in the streaming market, and to that end, Paramount managed to land another coup. A new multi-year deal between Football Australia and Paramount Australia will see “…an extended package of soccer games” come to both the Network 10 broadcaster and Paramount+ in Australia.
Now, both Socceroos and Matildas games—the men’s and women’s national teams, respectively—will be available on the two platforms through 2028. The new package will also include action from the 2027 FIFA Women’s World Cup in Brazil and all AFC Asian Qualifier matches except for the 2026 FIFA World Cup event.
Is Paramount a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on PARA stock based on three Buys, eight Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. After a 27.17% loss in its share price over the past year, the average PARA price target of $12.06 per share implies 12.66% upside potential.
