Paramount Global Suitors Draw Investor Interest, Driving Stock Price Up

Potential suitors of Paramount Global Skydance and RedBird Capital,  in acquiring controlling shares of the company, have piqued the interest of Wall Street investors.

Mid-day Friday trading of Paramount Global was sharply higher, up 15% to $17.23.

A deal would need to come via National Amusements Inc. (NAI), which is effectively controlled by Paramount Global’s chair, Shari Redstone. NAI has 77% of the voting right share of the company.

A National Amusements Inc. representative had no comment.

Wells Fargo Securities says those shares are currently valued at around $1 billion, but doesn’t effectively equate to a “meaningful control premium”. 

Steven Cahall, media analyst of Wells Fargo, believes the interest on the part of Skydance -- a producer on the Paramount lot -- and investment firm RedBird would be directed to a plan to break up the company, with Skydance keeping Paramount’s studio operations. 



The key piece there is that around $6 billion licensing program fees go through the studio operations.

Parts of the company to be sold, according to Cahall, include its ad-supported streaming platform Pluto TV, valued at around $1.7 billion; and linear TV networks/platforms (including CBS, and cable networks), $16 billion.

We think the probability of a deal is decent given Skydance is a credible buyer,”  says Cahall, in a note. “Paramount Global recently announced senior executive change of control packages and Ms. Redstone may have grown tired of Wall Street's drumbeat of media negativity and familial intrigue.”

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