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NEW YORK - GAMCO Asset Management Inc. and its affiliates have elected to receive cash for their approximately 12.0% stake in Paramount Global’s class A voting stock as part of Paramount’s pending combination with Skydance Media, according to a regulatory filing. InvestingPro data shows GAMCO Investors (OTCQX:GAMI) maintains strong financial health with a 10.09% dividend yield and trades at an attractive P/E ratio of 8.35.
The investment management firm, an affiliate of GAMCO Investors, Inc. (OTCQX:GAMI), disclosed in a 13D filing with the Securities and Exchange Commission on July 31 that it made a cash election under the terms of the transaction for all class A shares held on behalf of its clients. With a market capitalization of $512.87 million and consistently strong financial metrics, GAMCO appears undervalued according to InvestingPro’s Fair Value analysis.
GAMCO indicated that the decision was effectively forced upon them since the terms of the Paramount-Skydance deal do not allow current holders of the class A voting stock to continue holding such shares after the transaction completes.
The filing represents a significant development for Paramount Global (NASDAQ:PARAA) as it moves forward with its combination with Skydance Media. The transaction structure requires class A voting shareholders to convert their holdings to cash rather than maintain their voting position in the combined entity.
GAMCO Investors manages assets through private advisory accounts, mutual funds, and closed-end funds via its subsidiaries, according to the press release statement.
The Paramount-Skydance transaction continues to progress through its regulatory and approval processes, with GAMCO’s cash election representing one of the necessary steps for major shareholders ahead of the deal’s completion. Discover more exclusive insights and 8 additional ProTips about GAMCO’s financial performance with an InvestingPro subscription.
In other recent news, GAMCO Investors, Inc. reported assets under management totaling $33.3 billion as of June 30, 2025. This marks an increase from the $30.7 billion recorded a year earlier. The firm also announced its expectations for second quarter 2025 diluted earnings to range between $0.89 and $0.94 per share. This is a notable rise compared to the $0.61 per share reported for the same period in 2024. These developments reflect a positive trend in GAMCO’s financial performance. The investment management firm continues to focus on enhancing its financial metrics. Investors will likely keep a close watch on these figures as they assess the company’s growth trajectory.
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