Jim Lebenthal Paramount Global PARA-Q HOLD Jul 03, 2024

She bought this in 2020 at $16. The content alone makes this worth $15.

There's opportunity and runway here. Most of all, there are margins in an ad tier.

Despite today's rally on a report that Amazon will offer an ad tier on Prime, PARA's momentum is clearly broken already. Doesn't like it.

Potential takeout target.
Broadcasting segment adds complexity to business. 
Berkshire Hathaway owns ~15% of shares (good sign).
Tough environment with competition from Netflix and Disney.

They have the balance sheet from Hades

They just reported. Expectations were so low, but they delivered in-sales, a strong earnings beat, driven by Paramount+ whose revenues and subscribers have risen. The streamer has also expanded its profits. However, ad revenues and licensing (due to the actors and writers strikes) were down on the quarter and missed. But streaming's strength offset that weakness. That said, PARA has a weak balance sheet that needs interest rates to decline.

Are discussing bundling their streaming service, so shares are popping on this good news. They've had a rough year. They're cutting costs and turning things around. 2024 will be better for ads in linear TV. Free cash flow estimates are rising to $400 million. The market is seeing how things are not that dire here.

The balance sheet is awful. Shares are down 54% in the last year.

The merger with Skydance is a done deal. Move on. Look at Disney instead, which is cheap now.