Paramount (PARA) recently announced a new strategy to attract more advertisers, particularly smaller businesses, in hopes of improving its advertising rates. This decision led to the creation of a “self-serve” advertising platform that allows small and medium-sized businesses to access streaming inventory on Paramount+ and PlutoTV with a minimum spending requirement of $500. Advertisers can target specific geographical locations, demographics, and content genres, with campaigns starting in as little as one day.
In addition to this development, there are reports of potential mergers and acquisitions in the media industry. While the Skydance / Paramount deal appears to be progressing smoothly, media holding company IAC is also looking to engage in dealmaking activities after focusing on improving profitability for its existing investments. IAC has expressed interest in exploring internal M&A opportunities or expanding its current businesses, although it may consider acquiring new entities if the right opportunity arises.
Looking at the performance of Paramount stock, analysts on Wall Street have assigned a Moderate Sell consensus rating based on recent evaluations, with three Buy ratings, seven Hold ratings, and 10 Sell ratings. Following a 22.4% decline in share price over the past year, the average price target for PARA stock is $12, suggesting a potential 0.97% upside.
Overall, Paramount’s latest advertising strategy and potential M&A activities indicate a shift in focus towards attracting more advertisers and exploring new business opportunities. Investors will be closely monitoring the company’s performance and future developments in the coming months.
