© Reuters.
NEW YORK – Shares of Paramount soared 12.4% today following speculation that Skydance Media and RedBird Capital are considering a takeover for controlling stakes in the media giant. The surge came after reports of acquisition interests that appear to be centered on Paramount’s studio assets, rather than its entire portfolio.
Wells Fargo analysts have weighed in on the situation, pointing out the disproportionate voting rights held by National Amusements relative to their equity stake in Paramount. The financial institution’s ‘Mission Possible’ report issued an underweight rating with a $12 price target for Paramount’s shares. The analysis suggests that buyer interest is primarily in the studios sector, a sentiment that is reflected in the recent implementation of senior executive change of control packages at Paramount.
A potential deal could lead to significant restructuring within Paramount. If Skydance Media, considered a credible buyer, were to take control, it might result in merging studio assets, discontinuing the streaming service Paramout+, selling off Pluto TV, and parting with various television series shows.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Source link
