Paramount: Rumors May Actually Come to Fruition This Time, and the Deal for Shareholders Improved

Reporting from the Wall Street Journal, New York Times, and CNBC suggests that a deal for Paramount will be announced soon. Based on that reporting, we believe Paramount’s shareholders will be taken care of in a far better manner than in the original rumored offer from Skydance, a proposal that we had said “stinks.” Much is to be determined regarding whether any agreement will be approved and how a follow-on merger between Paramount and Skydance will look financially. We are maintaining our $20 fair value estimate, which continues to solely reflect Paramount’s value as an independent company.