Why Paramount Global Stock Popped Today

Shares of Paramount Global (NASDAQ: PARA) (NASDAQ: PARA.A) closed up 12% on Friday after Puck News reported that the entertainment conglomerate is the subject of takeover interest from Skydance Media and RedBird Capital Partners.

Citing three sources familiar with the situation, the media outlet said that Skydance and RedBird are considering indirectly taking control of Paramount -- by acquiring media company National Amusements, which currently owns around 77% of Paramount's Class A voting shares. The talks are still very early-stage, however. Its sources told Puck News: "There's no official process or dealbook, but NDAs have been signed, and a small group is said to be working up the numbers."

For perspective, Paramount's market capitalization after today's pop sits around $11.1 billion, and the company ended its most recent quarter with total debt of nearly $17 billion (including long-term debt of around $15.6 billion).

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Source Fool.com