It looks like Byron Allen is indeed going for Paramount (NASDAQ:PARA), as the two sides have begun talks. Nevertheless, Paramount is down nearly 8% in the closing minutes of Wednesday’s trading session. Allen noted that Paramount has “…responded to our offer and we’re officially engaged.” This comes at the same time that David Ellison’s Skydance is working to buy a controlling interest in National Amusements, Paramount’s parent company.
However, Byron Allen is almost notorious for making offers on media properties and having them ultimately go nowhere. Previously, he attempted to buy Black Entertainment Television, E.W. Scripps (NASDAQ:SSP) stations, ABC, and several other linear networks from Disney (NYSE:DIS). None of these worked, and they were not the only attempts.
Paramount in Full Display
Perhaps in a bid to inflate its value for its potential purchasers, Paramount is pulling out all the stops. It’s working with the Mirage hotel on the Las Vegas Strip to bring out Paramount Mountain, a live user experience that will let users interact with a range of Paramount properties, from “Yellowstone” to “Spongebob Squarepants.” Plus, Paramount is bringing back “Halo” for its second season, and “Star Trek: Discovery” will be making a comeback sometime this spring.
What Is Paramount Global’s Stock Target?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on PARA stock based on three Buys, two Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. After a 48.11% loss in its share price over the past year, the average PARA price target of $14.58 per share implies 13.42% upside potential.
