Group 1 - Paramount Global (NASDAQ: PARA) is significantly undervalued compared to its assets and peers due to management issues and cord-cutting trends [1] - The recent Skydance deal, while not ideal, has the potential to unlock value for Paramount in the near future [1] Group 2 - The focus is on analyzing undervalued companies with strong fundamentals and cash flows, particularly in sectors like Oil & Gas and consumer goods [2] - There is a preference for long-term value investing, with occasional interest in deal arbitrage opportunities [2]

NEW YORK and PHILADELPHIA, Jan. 7, 2025 /PRNewswire/ -- Paramount Global (NASDAQ: PARA) (NASDAQ: PARAA) and Comcast (NASDAQ: CMCSA) today announced the renewal of their comprehensive distribution agreements to continue delivering Paramount's leading portfolio of broadcast, entertainment, news and sports brands across Xfinity platforms. The multi-year deals feature ongoing carriage of Paramount's networks, including CBS, BET, Comedy Central, MTV, Nickelodeon, Paramount Network and more. Comcast subscribers w ...

Core Viewpoint - Nickelodeon and CBS Sports are collaborating to present a special alternate telecast of the NFL Wild Card Game featuring characters from SpongeBob SquarePants, aimed at engaging younger audiences with a unique viewing experience [1][7]. Group 1: Event Details - The NFL Wild Card Game will feature the Los Angeles Chargers vs. Houston Texans, airing on January 11, 2025, at 4:30 PM (ET) [1]. - The telecast will include enhanced graphics, augmented reality, and appearances by various characters from Paramount's portfolio [1][3]. - This event marks the sixth collaboration between CBS Sports and Nickelodeon for an NFL game, following the successful Super Bowl LVIII telecast [7]. Group 2: Character Involvement - SpongeBob SquarePants and Patrick Star will reprise their roles in the virtual booth, joined by CBS Sports analyst Nate Burleson [2]. - Additional characters such as Sandy Cheeks and Dora will participate, with Dora explaining game rules and penalties [2][3]. Group 3: Unique Features - The telecast will include interactive elements like a "Wild Cod" group, a Submarine Blimp, and Teenage Mutant Ninja Turtles launching pizzas [4]. - New features such as clam cannons that fire Slime and an exclusive sneak peek of "Henry Danger The Movie" will be showcased during halftime [4]. Group 4: Viewer Engagement - Fans can participate by voting for the player they think should receive the NVP award through Nickelodeon's website [5]. - Following the game, a special recap show titled "Bikini Bottom Breakdown: NFL Wild Card" will air on January 15, 2025 [6]. Group 5: Streaming Availability - The game will be available for streaming on mobile devices via NFL+, and CBS Sports' broadcast will be accessible through Paramount+ and other digital platforms [8][9].

The third film in the series, Sonic the Hedgehog 3, recently surpassed $100M at the international box office, and has earned over $187M domestically for a cumulative worldwide gross to-date of over $312MHOLLYWOOD, Calif., Jan. 5, 2025  /PRNewswire/ -- Paramount Pictures today announced that its Sonic the Hedgehog film franchise, based on the SEGA video game, has surpassed $1B in total box office receipts worldwide, as Sonic the Hedgehog 3 continues to draw audiences to theatres across the globe. PARAMOUN ...

Paramount Global’s (PARA) shares have declined 31.1% over the past year, underperforming the Zacks Consumer Discretionary sector’s 12.9% return and the Zacks Media Conglomerates industry’s 20.7% growth.The underperformance resulted from a 6% year-over-year revenue dip to $6.73 billion in the third quarter, also lagging the Zacks Consensus Estimate of $6.91 billion. This shortfall was primarily led by weakness in the TV Media and Filmed Entertainment segments.However, Paramount’s prospects are bolstered by t ...

Core Viewpoint - The merger between Paramount and Skydance is anticipated to be influenced by the relationship between Paramount's Shari Redstone and President-elect Donald Trump, which may help navigate potential FCC issues and facilitate a successful deal closure by the first half of 2025 [4][10]. Company and Industry Summary - Shari Redstone, controlling Paramount through National Amusements, is set to receive $1.75 billion from the merger, while Skydance will assume National Amusements' financial obligations and cover Redstone's private jet lease and New York apartment expenses [2][4]. - Skydance has committed $4.5 billion to assist Paramount in buying out approximately 50% of its nonvoting shares, aiming to appease nonvoting investors [2]. - The merger combines Paramount's renowned studio and networks with Skydance's successful productions, including "Top Gun: Maverick" and "Jack Ryan," with plans for over $2 billion in cost cuts [6]. - Management changes are underway, with David Ellison and Jeff Shell leading the integration, and former Netflix executive Cindy Holland likely to oversee streaming operations [6][9]. - Despite the lawsuit from Trump against CBS regarding a "60 Minutes" interview, Redstone has expressed understanding of Trump's frustrations but does not support the lawsuit [7][8].

Core Points - Paramount Global announced the redemption of all remaining outstanding 4.750% senior notes due May 15, 2025, on December 27, 2024 [1][2] - The redemption price will include 100% of the principal amount, a make-whole amount, and accrued unpaid interest [2] - The total principal amount of the 4.750% senior notes outstanding is $125,561,000, which will all be redeemed [2] Company Overview - Paramount Global is a leading global media, streaming, and entertainment company, known for creating premium content and experiences [3] - The company's portfolio includes well-known brands such as CBS, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+, and Pluto TV [3] - Paramount Global possesses one of the industry's most extensive libraries of TV and film titles and offers innovative streaming services and digital video products [3]

First Time the Emmy Award®-Winning Series Will Air Within Paramount's Family of Brands Since Its Hit Run on CBSNick At Nite To Begin Tuesday, Dec. 24, with Holiday-Themed EpisodesMTV To Kick Off With An All-Day Marathon On Wednesday, Jan. 1Click HERE for The Big Bang Theory assetsClick HERE for Nickelodeon promoClick HERE for MTV promoNEW YORK, Dec. 17, 2024 /PRNewswire/ -- Paramount announced today that The Big Bang Theory will join Nick at Nite and MTV lineups, bringing holiday cheer through the new year ...

Shari Redstone's Financial Situation - Shari Redstone paid off a $186 million debt owed by National Amusements, the holding company controlling 77.5% of Paramount's voting stock, using cash mostly fronted by Larry Ellison [1][2] - The debt carried an 11.5% interest rate and was not due until May 2025, but Redstone paid it off early [5] - Redstone was reportedly in a cash crunch as Paramount struggled with weak performance across its business units [6] - National Amusements had previously sold real estate assets to make a $40 million debt payment in February [6] Skydance-Paramount Merger Deal - Skydance and its partners agreed to pay $2.4 billion for National Amusements' stake in Paramount as part of an $8 billion deal that will lead to a merger [4] - The deal values Skydance at 1,600 times its EBITDA of $3 million for the 12 months ending June 30, 2024 [11][12] - Skydance will pay $15 per share for up to $4.3 billion of Paramount's common shares, about half of Paramount's market cap [14] - The merged company is projected to have EBITDA of $258 million in 2025, driven by the release of new films [15] Financial Projections and Concerns - Paramount's revenue is expected to grow from $974 million in 2024 to $2.3 billion in 2025 [19] - Some Paramount shareholders and analysts expressed concerns about the deal, with one analyst calling it "a bad deal" [16][17] - Paramount's second-largest shareholder urged the FCC to review Skydance's finances, which could delay the deal's closing [17] Industry Context - The Skydance-Paramount deal contrasts with Amazon's acquisition of MGM, which was valued at 27.5 times EBITDA [16] - Skydance is known for co-producing major film franchises like "Mission: Impossible" and "Top Gun" [2][13]

Financial Data and Key Metrics Changes - Adjusted OIBDA for Q3 2024 was $858 million, reflecting a 20% year-over-year increase, driven by improvements in the D2C business [40] - Total company advertising grew by 2%, with D2C advertising showing strong growth of 18%, an acceleration from 16% in Q2 [41][42] - Affiliate and subscription revenue declined by 1% in Q3, but grew by 1% when excluding the impact of Showtime pay-per-view events [45][46] Business Line Data and Key Metrics Changes - D2C achieved profitability for the second consecutive quarter, with adjusted OIBDA improving by over $1 billion over the past four quarters [8] - Paramount+ added 3.5 million subscribers in Q3, reaching a total of 72 million subscribers, with a year-over-year revenue growth of 27% [47][40] - Pluto delivered its highest consumption ever, with 5.6 billion viewing hours, up 5% year-to-date [18] Market Data and Key Metrics Changes - The NFL on CBS averaged over 20 million viewers in the first five weeks of the season, a 5% increase from the previous year [28] - CBS News 24x7 streaming network saw total minutes watched grow by 56% over 2023 [30] - International advertising revenue benefited from the recognition of previously underreported revenue, contributing approximately $50 million in Q3 [68] Company Strategy and Development Direction - The company is focused on transforming D2C and streamlining operations to achieve $500 million in annual run rate savings [9][19] - The Skydance transaction is expected to close in the first half of 2025, subject to regulatory approvals [10] - The company aims to reach domestic profitability for Paramount+ by 2025, with a focus on content streaming and advertising as key growth levers [49][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position as a standalone entity, driven by hit content and strategic execution [60] - The company anticipates continued top-line growth in Q4, despite expected higher content expenses [86] - Management remains optimistic about the trajectory of the business, particularly in D2C profitability and overall financial goals for 2024 [55][54] Other Important Information - The company is evaluating potential partnerships in streaming to create long-term value for shareholders [18] - The ongoing dispute with Nielsen is being addressed, with management hopeful for a resolution [16] - The company has executed 90% of its planned workforce reductions, aiming to right-size its cost base [19] Q&A Session Summary Question: Discussion on D2C partnerships and profitability timeline - Management highlighted the importance of strategic partnerships and expressed confidence in achieving domestic profitability in 2025, with Pluto already profitable [62][60] Question: Clarity on international market strategy for Paramount+ - Management indicated a market-by-market approach to maximize content value, with various strategies including owned operations and licensing [66] Question: Impact of Nielsen data on advertising sales - Management stated there has been no adverse impact on ad revenue to date and does not expect material impact in Q4 [72] Question: Details on DTC trends and Charter partnership impact - Management noted that the Charter partnership contributed to subscriber growth, with expectations for continued growth over time [82] Question: DTC efficiencies and marketing costs - Management explained that marketing efficiencies are driven by a diverse subscriber base and that programming charges taken earlier in the year have potential benefits for cost amortization [92][93]