Paramount Global gains amid speculation could become activist target
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Paramount Global (NASDAQ:PARA) rose 3% amid speculation that the entertainment company could be a potential target for an activist investor.
The movie studio and CBS network owner could be a potential target for an activist as it competes with bigger rivals such as Netflix (NFLX) and Disney (DIS), according to an Activist Insight report that traders were circulating on Wednesday. Paramount (PARA) is in the 80th percentile of the Insightia Vulnerability of companies that could face an activist investor.

The report highlighted that Warren Buffett's Berkshire Hathaway is the second largest holder of Paramount Global (PARA) and recent comments the billionaire made at his annual meeting about the company cutting its dividend. 

Paramount (PARA) could be a tough target for an activist given Shari Redstone's National Amusements controlling stake through super-voting shares.
Paramount (PARA) announced last Tuesday it planned to cut 25% of workforce across entertainment divisions.

Paramount (PARA) shares plunged 28% earlier this month after it reported a significant headline loss in first-quarter earnings and slashed its dividend.