Well, there went any hope of a rapid solution for Paramount (NASDAQ:PARA), as the studio is starting to entertain new offers once more. This time around, a new coalition effort is pointing itself not at Paramount but rather at Paramount’s support: National Amusements. Investors, meanwhile, were anything but happy, and shares slipped fractionally in Monday afternoon’s trading.
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The latest attempt comes from the coalition effort of Edgar Bronfman Jr., who has teamed up with Bain Capital to put together a $2.5 billion offer to buy National Amusements. The owner of National Amusements, in turn, will own 77% of all voting shares in Paramount, so it’s been regarded as a back-door measure to take over the studio.
However, there’s no formal offer on the table yet, and it’s not immediately clear just what Bronfman and Bain would do should they land the company behind the studio. And with Bronfman serving as executive chairman of FuboTV (NYSE:FUBO), there may be a regulatory hurdle or two here getting involved.
The Impact on Modern Media Culture
Amid all the offers emerging to buy either Paramount or Paramount’s controller, National Amusements, there’s a point that not everyone is considering here: the impact on our modern media culture. Paramount, after all, controls a wide range of properties, some of which are storied institutions like “60 Minutes.”
Others, meanwhile, merely were, like MTV. But with all of this cultural history under one roof, it’s got some wondering if maybe it should be more than just Shari Redstone’s say-so determining what happens to it all. Regardless, we know this much: there’s a lot at stake here, and with so many potential buyers, each with an agenda of their own, this is going to fundamentally shake up the landscape no matter how it turns out.
What Is Paramount Global’s Stock Target?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on PARA stock based on two Buys, eight Holds, and seven Sells assigned in the past three months, as indicated by the graphic below. After a 26.75% loss in its share price over the past year, the average PARA price target of $12.50 per share implies 4.78% upside potential.
