PSKY
Judge Puts Brakes On Paramount-WBD Merger
Article Summary
HOLD- Paramount Skydance (NASDAQ: PSD) was temporarily halted from completing its $110 billion acquisition of Warner Brothers Discovery after a federal judge issued a temporary restraining order, which will expire in 14 days.
- The restraining order was issued at the request of a California-led 12-state coalition that claimed the merger would violate the Clayton antitrust act, which prohibits mergers that could substantially reduce competition.
- The judge ruled that the states raised serious questions regarding the merits of their antitrust claim, and that the balance of equities and public interest weighed in favor of a short-term pause.
- A hearing is scheduled for August 3, after which the judge will decide whether to issue a preliminary injunction that would block the merger for a longer period.
- The states argued that a combined Paramount-Warner Bros.
- Discovery would control more than 30% of big-budget films likely to earn more than $100 million in box-office revenue, and control of more than 50 basic cable channels, giving it more leverage with distributors.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 1.1% | 25% | 20.0 ptsMinimal (1.1%) - Very weak |
| EPS Growth Next 5Y ? | 39.8% | 25% | 90.0 ptsExcellent (39.8%) - Strong outlook |
| Target Price Upside ? | 32.6% | 20% | 85.0 ptsLarge Upside (32.6%) - Target: $11.36 vs Current: $8.57 |
| Gross Margin % ? | 28.7% | 15% | 40.0 ptsModerate (28.7%) - Adequate margins |
| Drawdown from 52-Wk High ? | -58.9% | 15% | 100.0 ptsDeep Discount (-58.9%) - Best entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About PSKY
- Paramount Skydance Corporation operates as a media and entertainment company worldwide.
- It operates in three segments: Studios, Direct-to-Consumer, and TV Media.
- The company operates CBS Television Network, a domestic broadcast television network; CBS Stations, a television station; international free-to-air networks comprising Network 10, Channel 5, Telefe, and Chilevisión; and domestic premium and basic cable networks, such as Nickelodeon, MTV, CMT, Comedy Central, BET, Paramount+ with SHOWTIME, Paramount Network, The Smithsonian Channel, BET Media Group, CBS Sports Network, and international extensions of these brands.
- It also provides domestic and international television studio operations, including CBS Studios, Paramount Television Studios, and Showtime; CBS Media Ventures, which produces and distributes first-run syndicated programming; and digital properties consist of CBS News and CBS Sports HQ.
- In addition, the company offers a portfolio of domestic and international pay and free streaming services, including Paramount+, Pluto TV, and BET+.
- Further, it produces and acquires films, series, and short-form content for release and licensing worldwide, including in theaters, on streaming services, on television, through home entertainment, and DVDs, Blu-ray; and operates a portfolio consisting of Paramount Pictures, Paramount Players, Paramount Animation, Nickelodeon Studio, and Miramax.
- It provides production, distribution, and advertising solutions.
- The company was founded in 1914 and is headquartered in New York, New York.