Well, one thing has become clear about the ongoing drama of the Paramount (NASDAQ:PARA) sale: those at the top will be well-protected. Not only are several potential suitors going after Shari Redstone’s connection to National Amusements rather than bothering with paying off all those little shareholders, but there’s also word that the recently-minted “Office of the CEO” will be well compensated. All those little investors, though, didn’t seem particularly fazed and bought in, driving shares up over 2% in Tuesday afternoon’s trading.
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We know that Paramount, after ditching Bob Bakish, instead installed an “Office of the CEO” held by three people at once. But the latest reports, as seen by an 8-K filing with the Securities and Exchange Commission (SEC) revealed that the three people in the Office of the CEO are all now part of the “Executive Change in Control Severance Protection Plan.”
The three will now be in line for a severance multiple of two and benefits for the 24 months after being dismissed. They are also in line for $2.75 million in cash bonuses outright, part of Paramount’s “short-term incentive plan.” However, this will be pro-rated against how long they’re actually in and based on a set of performance goals.
Leaning on Animation
Meeting those goals will be just a little easier, meanwhile, with five different animated movies currently in development at Paramount Animation. While at the Annecy Festival, Paramount Animation’s president Ramsey Naito revealed a whole slate of animated fare, including, among other things, a retelling of “Swan Lake” and—you’ll want to be sitting down for this one—a Ron Howard-produced tale of a good-natured puppy who, somehow, becomes a space pirate. No word on release dates yet, but the reports are catching attention nonetheless, and Paramount needs quality content right now.
Is Paramount Global a Buy or Sell?
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 24.75% loss in its share price over the past year, the average PARA price target of $12.50 per share implies 2.21% upside potential.
