The last several weeks have pretty much not gone even sort of right for entertainment giant Paramount (PARA), as once again, lawmakers are taking aim at the studio. Apparently, this time, a group of senators is concerned that the move to settle the lawsuit with President Trump could be considered in violation of federal anti-bribery laws, and investigations have apparently already begun. Investors, meanwhile, seem to consider this the worst kind of political grandstanding, as shares ticked up fractionally in the closing minutes of Tuesday’s trading.
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The latest challenge came by way of a letter from Senators Bernie Sanders, Elizabeth Warren, and Ron Wyden, who are apparently wondering if the potential settlement of the lawsuit between Trump and Paramount could be considered a violation of anti-bribery laws. The lawsuit, after all, is considered a substantial roadblock to the successful completion of a merger between Paramount and Skydance, which needs Federal Communications Commission (FCC) approval to go through.
Of course, Paramount notes that the lawsuit is “…completely separate from, and unrelated to, the Skydance transaction and the FCC approval process.” Which, of course, it would whether it actually was or not, but the word from Paramount must stand as is until proven otherwise. And given that there are other roadblocks involved—including a state pension fund and a city pension fund, at last report, plus a potential suit from major shareholder Mario Gabelli—the notion that settling the Trump lawsuit would somehow fix everything is far-fetched at best.
“The Great Dora Fiesta”
In happier news, Paramount is also bracing for “The Great Dora Fiesta,” which represents the “…most significant expansion of franchise in its 25-year history,” noted reports from the studio. Apparently, the reports noted, Nickelodeon is planning to put a lot of weight behind Dora the Explorer ahead of the release of a new movie, Dora and the Search for Sol Dorado. That movie will show up July 2, and will be the start of the event in question.
The event will carry on from there, including an hour-long special episode of DORA, the preschool version of Dora the Explorer, and a third season of the same that will come out the same day, July 2. A birthday-themed episode will follow on August 15, which is Dora’s 25th anniversary. More such events are set to follow, including featuring Dora in a “kindergarten readiness campaign.”
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 2.64% loss in its share price over the past year, the average PARA price target of $12 per share implies 1.01% upside potential.
