Paramount Global: Betting The Farm On Streaming

Summary

• Paramount Global is cheap overall, but most of the value is unlikely to be realized through any kind of spin-offs or asset sales.
• The company is still surviving off of its legacy media businesses, which are slowly declining. It's effectively making a bet on Paramount+.
• Paramount+ has shown growth in subscribers, but the streaming operation is currently burning cash and needs to prove itself in the competitive streaming market.
• Overall, Paramount+'s growth is driven by the original content created by Taylor Sheridan. Because of its current strategy then, the future of Paramount Global, as a whole, is now reliant on the continued success of this new and increasingly valuable franchise.

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Right now, Paramount Global (NASDAQ: PARA) looks relatively safe – financially speaking. But the market has taken a different position. Much like the Roy Family in hit show Succession (at a competing media company I’ll add), the market realizes

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.