Paramount (NASDAQ:PARA) surged in pre-market trading after the New York Times reported that the media and entertainment conglomerate could be in “exclusive” discussions with Skydance, a media company, for a potential deal.
The report stated that it was still unclear whether the two sides would agree to exclusive discussions, especially considering there are other potential suitors for Paramount.
Other Bidders for Paramount
Apollo Global Management (NYSE:APO), an investment firm, submitted an $11 billion bid for the company’s movie studio. However, Paramount’s board aims to sell the entire company rather than splitting its businesses separately.
Additionally, Byron Allen, a media personality who owns Entertainment Studios, has expressed interest in Paramount with a bid of $14.3 billion.
Why is Paramount Up for Sale?
Shari Redstone controls 77% of the voting stock of National Amusements, the company overseeing Paramount. Redstone is contemplating selling National Amusements due to a significant shift in the media landscape from traditional television to streaming. Streaming giants like Netflix (NASDAQ:NFLX) have deeper pockets to offer sports and entertainment content.
Is PARA a Buy or Sell?
Analysts remain sidelined about PARA stock with a Hold consensus rating based on six Buys, eight Holds, and seven Sells. Over the past year, PARA stock has declined by more than 40%, and the average PARA price target of $13.29 implies an upside potential of 13% at current levels.
