© Reuters.
NEW YORK – Paramount shares soared 12.4% today following speculation that Skydance Media and RedBird Capital are considering an acquisition to control stakes in the media giant. The increase came after reports of acquisition interest that appear to focus 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 that National Amusements holds relative to its ownership stake in Paramount. The financial institution's 'Mission Possible' report issued an underweight rating with a $12 price target on Paramount shares. The analysis suggests that buyer interest is primarily focused on the studio sector, a sentiment reflected in the recent implementation of change-of-control packages for senior executives at Paramount.
A potential deal could lead to significant restructuring within Paramount. If Skydance Media, considered a credible buyer, were to take control, it could result in the merger of the studios' assets, the discontinuation of the Paramout+ streaming service, the sale of Pluto TV and the separation of several television series.
This article was generated with the support of ai and reviewed by an editor. For more information consult our T&C.
