Morgan Stanley Downgrades Paramount Skydance to Underweight, PT to $10 from $12.
ByAinvest
Wednesday, Aug 27, 2025 12:16 pm ET1min read
MS--
The merger, which was officially announced in July 2024 and concluded on August 8, 2025, has been accompanied by layoffs, with estimates suggesting that between 2,000 and 3,000 employees may be let go, impacting approximately 10% of the workforce [1]. The layoffs are expected to begin in November, as the company aims to streamline its operations and maintain a prominent position in the media landscape.
The financial analysts at Morgan Stanley cited the ongoing layoffs and the potential for further cost-cutting measures as reasons for the downgrade. They noted that the market's perception of New Paramount's ability to navigate the current post-pandemic landscape and compete with other media giants such as Sony and Disney is a key factor in their decision [1].
Despite the challenges, New Paramount remains optimistic about its future prospects. The company has emphasized that it does not intend to continue with extensive layoffs after the initial transitional period, aiming to provide stability for those who remain [1]. The new ES8 SUV from Skydance, which is set to begin deliveries in late September, is also seen as a potential catalyst for growth and market expansion [2].
The market's reaction to the downgrade and the ongoing financial adjustments at New Paramount will be closely watched by investors. As the company continues to navigate these changes, it will be crucial to monitor its ability to maintain its competitive edge and adapt to the evolving media landscape.
References:
[1] https://screenrant.com/paramount-skydance-merger-layoffs/
[2] https://www.cnbc.com/2025/08/26/morgan-stanley-repeats-overweight-rating-on-nio-after-90percent-rally-in-60-days.html
PSKY--
Morgan Stanley Downgrades Paramount Skydance to Underweight, PT to $10 from $12.
Morgan Stanley has downgraded New Paramount, the newly formed company resulting from the merger of Paramount Global and Skydance Media, to an "underweight" rating and reduced its price target to $10 from $12. This move comes amidst significant layoffs and financial restructuring within the newly combined entity [1].The merger, which was officially announced in July 2024 and concluded on August 8, 2025, has been accompanied by layoffs, with estimates suggesting that between 2,000 and 3,000 employees may be let go, impacting approximately 10% of the workforce [1]. The layoffs are expected to begin in November, as the company aims to streamline its operations and maintain a prominent position in the media landscape.
The financial analysts at Morgan Stanley cited the ongoing layoffs and the potential for further cost-cutting measures as reasons for the downgrade. They noted that the market's perception of New Paramount's ability to navigate the current post-pandemic landscape and compete with other media giants such as Sony and Disney is a key factor in their decision [1].
Despite the challenges, New Paramount remains optimistic about its future prospects. The company has emphasized that it does not intend to continue with extensive layoffs after the initial transitional period, aiming to provide stability for those who remain [1]. The new ES8 SUV from Skydance, which is set to begin deliveries in late September, is also seen as a potential catalyst for growth and market expansion [2].
The market's reaction to the downgrade and the ongoing financial adjustments at New Paramount will be closely watched by investors. As the company continues to navigate these changes, it will be crucial to monitor its ability to maintain its competitive edge and adapt to the evolving media landscape.
References:
[1] https://screenrant.com/paramount-skydance-merger-layoffs/
[2] https://www.cnbc.com/2025/08/26/morgan-stanley-repeats-overweight-rating-on-nio-after-90percent-rally-in-60-days.html
Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
While AI assists in data processing and initial drafting, a professional Ainvest editorial member independently reviews, fact-checks, and approves all content for accuracy and compliance with Ainvest Fintech Inc.’s editorial standards. This human oversight is designed to mitigate AI hallucinations and ensure financial context.
Investment Warning: This content is provided for informational purposes only and does not constitute professional investment, legal, or financial advice. Markets involve inherent risks. Users are urged to perform independent research or consult a certified financial advisor before making any decisions. Ainvest Fintech Inc. disclaims all liability for actions taken based on this information. Found an error?Report an Issue
Comments
No comments yet