Entertainment giant Paramount (PARA) may be discovering that politics is one of those things that is funnier when it happens to other people. In fact, Paramount is pulling back on plans to release a new politically-themed project, and there are signs that even 60 Minutes may be at risk going forward. Neither development encouraged shareholders, and Paramount shares were down over 1.5% in the closing minutes of Monday’s trading.
The project in question, built around Comedy Central property The Daily Show, was known as Take a Seat, a “…civic participation initiative” that was designed to try and get grassroots support for certain candidates in local and state races. Take a Seat exhorted viewers to “be the leader you’ve been complaining for,” and was supported by several different groups with at least a semblance of bipartisan support.
But, given the times being what they are, the move was largely quashed at Paramount. Paramount reportedly grew fearful that the Trump Administration might use this attempt to influence state and local elections as a “cudgel” to block the Skydance / Paramount deal, which looks increasingly shaky with each passing day. A website has been set up for the initiative, and the initiative is likely still going to run, though under a “nonpartisan” partner, HeadCount.
Skydance or 60 Minutes?
And meanwhile, 60 Minutes is itself still in some hot water, reports note. With the deal between Skydance and Paramount still outstanding, and running afoul of regulatory issues thanks to Paramount’s news operations, some are starting to wonder if 60 Minutes et al will have to be curtailed somehow in order to get the government’s approval for the merger.
With 60 Minutes being one of the biggest fish in the leaky bucket that is linear television, reports suggest that Paramount—and particularly Shari Redstone—may be prepared to throw it entirely under the bus in exchange for the government’s signing off on the merger deal. With Paramount already ready to deal in the matter of the Trump lawsuit—a move that some already view as cowardice exemplified—Paramount may find itself in the thorny position that is either sacrificing the merger or sacrificing its standing among what viewers it still has.
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 13.64% loss in its share price over the past year, the average PARA price target of $12.25 per share implies 8.99% upside potential.
