While much of the news at Paramount (NASDAQ:PARA) lately has revolved around the merger between itself and one of several potential suitors, a new piece of information has come to light – current CEO Bob Bakish may not actually survive at the studio long enough to see the job done. Paramount shares fell over 2% in the closing minutes of Friday’s trading as a result.
Word from no less than the Wall Street Journal suggests that Paramount is actively considering pulling Bob Bakish out of the CEO slot. This, by itself, is kind of amazing, given that Paramount is on the cusp of a sale or possibly a merger. The reports note that Bakish may be pulled out and replaced with an entire committee, establishing what would be called an “office of the CEO” that would take over accordingly. Reports suggest that Paramount is losing faith in Bakish, even wondering if he failed to “pursue…strategic opportunities.”
Bulking Up the Stream
Meanwhile, Paramount is readying a whole string of new streaming properties to draw in more viewers, which should help it look more attractive to potential buyers. For instance, the recently released “Knuckles,” featuring the character from the “Sonic the Hedgehog” series, has some wondering about the release of a third installment.
A prequel to “Rosemary’s Baby” known as “Apartment 7A” is also poised for release on streaming, which some are taking to be a bad sign given that the production was described as “turbulent.” These are vital moves, particularly as shareholders are expressing increasing concern that the Skydance deal is not, in fact, in shareholders’ best interests.
Is Paramount a Good Stock to Buy?
Turning to Wall Street, analysts have a Hold consensus rating on PARA stock based on six Buys, eight Holds, and seven Sells assigned in the past three months, as indicated by the graphic below. After a 47.6% loss in its share price over the past year, the average PARA price target of $13.29 per share implies 11.73% upside potential.
