While there are large swaths of entertainment buffs out there who are terrified about a potential future involving artificial intelligence (AI) taking jobs from human creators, entertainment giant Paramount Skydance (PSKY) seems to be embracing the notion, at least somewhat. In fact, Paramount recently hired Barak Turovsky as its new head of consumer AI. The news seems to have resonated with shareholders, as Paramount shares gained nearly 2% in the closing minutes of Wednesday’s trading.
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Dane Glasgow, Paramount’s chief product officer, announced the hire. Glasgow noted, “He will be responsible for growing our AI/ML (machine learning) team and their capacity as we attract some of the best talent available. Barak and team will also explore ways to leverage AI to improve personalization, content discovery, platform intelligence, consumer engagement, and monetization capabilities across Paramount+ and Pluto TV.”
Meanwhile, new CEO David Ellison made it clear how vital this hiring actually was, saying, “And that has been one of the big problems that’s been facing legacy media, is they don’t actually understand that skill set and how critical that is, and that it is actually a combination of great content working with tech product hand in hand, that is how you actually get this business growing and scaling again, and you need both.”
Trouble at the News Desk
Meanwhile, Paramount also faces some trouble in its news division, as reports suggest that Bari Weiss may not have the power she once did. In fact, some reports suggest that Paramount may want to slim down Weiss’ mandate to focus on digital operations, while handing over the reins of TV news to a more “experienced” executive.
This would be a good time for these conversations, particularly as Paramount prepares to pick up the reins at Warner Bros. Discovery (WBD), assuming the regulatory firestorm abates sufficiently. The reports suggest concern that Weiss was perhaps given “…too broad a mandate,” particularly given that Weiss had little experience in television beforehand. There are also concerns that Weiss is “…drastically overstretched,” which suggests that some dilution of the role before it gets further increased would be in order.
Is Paramount Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on PSKY stock based on one Buy, five Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 16.74% loss in its share price over the past year, the average PSKY price target of $11.38 per share implies 12.85% upside potential.
