The list of people wanting to buy entertainment company Paramount (NASDAQ:PARA) just seems to get longer. We’ve heard from media moguls and corporations looking to either partner with or directly buy Paramount. Now, reports note a new one is on the list, and it would ultimately take Paramount private. That move gave Paramount shares a fractional boost as Wednesday’s trading looked to close.
This time around, Apollo Global Management has tossed its hat in the ring and is said to be looking into a potential deal. It may be going for the entire works, or it may just be out to get some of Paramount’s assets; talks are still in the early-stage.
The notion of Paramount selling out to someone has been around for a while, and with many noticing that Paramount is having its share of debt troubles—plus a growing problem competing in an increasingly full streaming environment—that makes it somewhat attractive for those looking to get into the market or wanting to augment their position therein.
Investors Aren’t Pleased
Current investors, meanwhile, aren’t exactly pleased with how things are turning out. LightShed Partners analyst Rich Greenfield, in a research note, called for CEO Bob Bakish to be removed, posthaste, and replaced quickly. The letter, titled “Dear Shari (Redstone): Why You Must Fire Bob Bakish to Save Paramount,” declares that Paramount+ was a waste of time and resources. Instead, Greenfield noted, Paramount could have gone the Sega route, selling content to other studios or even other streamers, while using its linear TV arm and NFL rights to support its smaller operations.
Is PARA a Buy or Sell Stock?
Turning to Wall Street, analysts have a Hold consensus rating on PARA stock based on six Buys, six Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. After a 39.26% loss in its share price over the past year, the average PARA price target of $13.06 per share implies 11.77% upside potential.
