The Paramount logo is seen on a constructing in Los Angeles on Nov. 13, 2023.
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Paramount Global shares surged Friday following reports from Deadline and Puck News that Skydance and RedBird Capital were exploring potentially taking on the media giant.
Paramount shares closed up greater than 12% Friday. The corporate has a market cap of about $10.4 billion and its yr to this point share price is virtually flat, lagging the S&P 500’s 20% gain.
Paramount’s controlling shareholder, Shari Redstone, has been open to creating big deals, especially as the corporate weathers the storms of declining revenue and streaming losses.
RedBird, controlled by longtime former Goldman Sachs partner Gerry Cardinale, is invested in quite a lot of media and sports assets, including David Ellison’s Skydance, which helped produce Paramount’s 2022 blockbuster “Top Gun: Maverick,” amongst other hits.
Paramount has a long-term debt load of $15.6 billion, and investors have speculated about how the corporate will give you the option to forge a path in 2024. TV ad revenue was also a weak spot for the corporate in its most up-to-date quarterly report.
Meanwhile, the corporate is reportedly considering bundling its Paramount+ streaming service with Apple TV+.
Paramount, RedBird Capital and Skydance didn’t immediately reply to CNBC’s requests for comment.
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Paramount Global’s year-to-date stock performance
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