Paramount's $1.75 Billion Fate

And, Apple's OpenAI board observer

July 03, 2024

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Today is Wednesday, July 3, 2024.

The Early Bird Index today is 75.33.

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Paramount's $1.75 Billion Fate

Shares of Paramount Global (Nasdaq: PARA) jumped 7.93% in after-hours trading on Tuesday after a report about a potential acquisition of the company surfaced.

Details: The Wall Street Journal reported late Tuesday afternoon that  Skydance Media has reached a preliminary agreement to buy Shari Redstone’s family company National Amusements for $1.75 billion and merge with Paramount.

  • National Amusements owns about 77% of Paramount’s voting shares.

  • The report also said that Paramount’s special committee of its board of directors will review the deal and potentially shop around.

Background: A previous deal for Skydance to acquire Paramount ended without an agreement in June. On Monday, reports surfaced that media mogul Barry Diller looked into buying Paramount.

Stock Price: Paramount’s stock is down 25% this year, including a 16% drop in the last 30 days.

Early Bird’s Nest Egg Gains: Paramount's challenges are reflective of issues faced throughout the broader media industry.

  • Traditional revenue streams are wrecked due to consumers canceling cable and satellite TV subscriptions.

  • Smaller streaming platforms such as Paramount+ are struggling to compete against bigger streaming players.

  • Media debt loads are growing. Paramount owes $14.6 billion.

Final Thoughts: Paramount investors finally get some relief. Let’s see if/when this deal closes.

Notables

Notable Earnings Today: Constellation Brands (NYSE: STZ).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: N/A.

Notable Economic Events Today: ADP Nonfarm Employment Change (8:15 a.m. ET), Jobless Claims (8:30 a.m. ET), Trade Balance (8:30 a.m. ET), S&P Global Services PMI (9:45 a.m. ET), S&P Global Composite PMI (9:45 a.m. ET), ISM Non-Manufacturing PMI / Price / Employment (10:00 a.m. ET), Factory Orders (10:00 a.m. ET), Crude Oil Inventories (10:30 a.m. ET), FOMC Meeting Minutes (2:00 p.m. ET).

Apple's OpenAI Board Observer

The partnership between Apple (Nasdaq: AAPL) and ChatGPT developer Open AI has taken another step forward.

Details: Bloomberg reported Tuesday that Apple will get an observer role on OpenAI’s board. Phil Schiller, the head of Apple’s App Store, will get the role. Microsoft (Nasdaq: MSFT) has a similar observer role on the board.

Final Thoughts: Apple’s stock is up 14% since introducing its new AI partnership with OpenAI in June.

Solana’s Meme Coin Rally

The price of Solana jumped 3% on Tuesday thanks in part to a related meme coin called Billy that grew recently.

Final Thoughts: Solana is up 50% this year, but down 5% in the last 30 days.

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.