It’s been a wild time in the streaming media space, and now, we’re seeing layoffs hit it as well. Paramount (NASDAQ:PARA) just recently announced its own slate, even as the possibility exists that Skydance Media will ultimately take the whole thing over. The news sent Paramount down modestly in the closing minutes of Friday afternoon’s trading.
While Paramount is keeping the total number of jobs about to be cut quiet, the fact that it’s cutting at all is noteworthy. Paramount plans to cut not only jobs but also spending on content internationally, seeking to “expand our shared services model as we streamline operations.” With its quarterly earnings report coming at the end of February and a potential buyout afoot, it’s not surprising that Paramount would want to make its balance sheet look better ahead of a public dog-and-pony show.
The Fallout Begins
Paramount’s cutting plans have already hit fairly hard. The move just cost its international markets president of broadcast and studios, Maria Kyriacou, whose job will have quite a bit less impact as Paramount now looks to put its focus behind “…our Hollywood franchises, films and series.” However, there will still be international content as Paramount has substantial free-to-air operations in Argentina, Australia, Chile, and the United Kingdom. Falling back on established brands is a good, albeit defensive, strategy.
Is Paramount Global a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on PARA stock based on three Buys, five Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. After a 38.97% loss in its share price over the past year, the average PARA price target of $14.06 per share implies 1.74% upside potential.
