Sector: Communication Services | Focus: Movies & Entertainment
HQ: New York City, New York
Financial Risks
Paramount faces significant goodwill impairment risk, particularly for the Cable Networks segment, due to declining linear affiliate market indicators and the company's overall valuation. Impairment charges for FCC licenses are also a concern, with potential for further write-downs. Ongoing litigation, including asbestos-related lawsuits and those related to the company's transactions, poses a risk of substantial future costs. Uncertainties in market conditions, consumer behavior, and content performance could lead to further impairment charges.
Financial Upside
The potential $6 billion investment in New Paramount, resulting from the Skydance transaction, offers a significant capital infusion. Paramount's streaming services, particularly Paramount+, show subscriber growth, potentially boosting revenue. The sale of Simon & Schuster, while a discontinued operation, generated a net gain. Improved Adjusted OIBDA, excluding certain charges, suggests potential operational efficiency gains.
