Report on Skydance financials implies $13.50 for Paramount, says Wells Fargo

Wells Fargo says the Wall Street Journal late Friday had a detailed piece on the contemplated deal structure between Paramount (PARA) and Skydance, including Skydance’s internal revenue and EBITDA expectations through 2026. Skydance’s financials implied $800M in pro-forma 2025 merger free cash flow and $13.50 per share for Paramount, the analyst tells investors in a research note. The firm thinks the board is building justification around a deal as it believes ultimately National Amusements will get to pick its merger partner. This level of detail emerging adds to the Paramount board’s justification for a deal and exchange ratio, which may value Paramount’s equity at $8B and Skydance’s at $5B, contends Wells Fargo. It thinks the pro forma share count could be 1.4B, equaling $13.50 per share for Paramount, adding that multiple expansion is possible if management signals asset sales. Wells keeps an Equal Weight rating on the stock with a $15 price target.