Benchmark reiterates Buy rating on Paramount stock as Skydance deal approved

Published 28/07/2025, 14:30
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Investing.com - Benchmark maintained its Buy rating and $16.00 price target on Paramount Global (NASDAQ:PARA), a $9.2 billion media giant, following the official approval of the company’s deal with Skydance. According to InvestingPro analysis, the stock appears undervalued, trading at $13.05 with a 25.8% year-to-date gain.The approval comes after Paramount made required changes and paid a nominal fine, effectively ending a corporate drama that had attracted significant attention across the media industry.Benchmark noted that pending shareholder lawsuits could still create "last-minute action," but the firm is now focusing on what comes next for the media giant.The research firm acknowledged being "one of, if not the only, positive voice" on Paramount since the deal announcement, particularly regarding the tender opportunity, with shares approaching Benchmark’s middle-of-the-road valuation estimate of $13.82.Benchmark suggested there remains a "real chance (albeit small) of a follow-on transaction that could materially change the perceived value of the company as a whole," though it expects shares may face pressure after the tender is completed.In other recent news, Paramount Global has reported several significant developments. Paramount received approval from the Federal Communications Commission for its merger with Skydance Media, a transaction valued at $8 billion. This regulatory milestone marks a pivotal step forward for the company. Additionally, Paramount has extended its partnership with "South Park" creators Trey Parker and Matt Stone in a deal worth over $1.25 billion, securing the rights to 50 new episodes and the show’s entire library for Paramount+. This agreement positions Paramount+ as the exclusive U.S. streaming platform for "South Park" content.Moreover, Paramount has entered into a global streaming agreement with the "South Park" creators, valued at $1.5 billion, ensuring the series’ presence on Paramount+ for the next five years. In other company news, former U.S. President Donald Trump announced that Paramount paid $16 million as part of a settlement related to a lawsuit over a televised interview with former Vice President Kamala Harris. These recent developments highlight Paramount’s strategic moves in content acquisition and legal matters.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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