So a while back, we heard about how the government is getting more involved in the affairs of entertainment giant Paramount (PARA), and apparently, the government is stepping up that involvement. Two more senators are stepping in, and that does not bode well for the Paramount / Skydance merger, or for Paramount in general. At least, that is what shareholders seemed to think, as Paramount shares were down nearly 1.5% in the closing minutes of Wednesday’s trading.
Confident Investing Starts Here:
- Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
Another pair of Democrat senators—Edward Markey of Massachusetts and Ben Ray Lujan of New Mexico—are sending letters to current head of the Federal Communications Commission Brendan Carr. The letter calls for the entire FCC to vote on the Paramount / Skydance merger, after considering that Paramount is actively considering a settlement with President Donald Trump over a lawsuit he filed against the company.
Carr has noted that the lawsuit is a significant factor in the agency’s review of that merger, and the senators in turn are concerned that the FCC is helping the White House to “censor media critics.” Of course, Carr has denied that the FCC investigation is being done to help the Trump administration, or President Trump himself, in any way. And the delays in the investigation, further, have not been done to pressure Paramount into a settlement.
Star Trek: Prodigy DOA?
Meanwhile, anyone hoping that Star Trek: Prodigy might get a third season has likely had their hopes dashed, meaning that only Strange New Worlds is the surviving NuTrek, as it is sometimes known, installment. Reports note that Netflix (NFLX) has pulled Prodigy from its archives, with season one set to fall out on June 24, and season two out the door January 1, 2026.
Whether or not the series will move back to Paramount, or get a third season, is unclear as of yet. There is a growing concern that Trek fandom in general is dying out, and that is leaving Paramount with a major problem. One of its biggest IP tentpoles is losing ground, and there is not much in the tank left to sustain it. With Starfleet Academy still some time out, and even that geared more toward the 13-25 set, the fate of Star Trek just does not have much in its favor, at least for now.
Is Paramount Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on PARA stock based on two Buys, seven Holds and six Sells assigned in the past three months, as indicated by the graphic below. After a 4.54% loss in its share price over the past year, the average PARA price target of $12 per share implies 1.61% upside potential.
