Paramount Global PARA PARAA shares are trading lower by 3.95% to $16.16 Friday morning. Shares of media stocks are trading lower amid the SAG-AFTRA union strike.
Strikes often come with increased production costs as alternative arrangements or temporary workers may need to be hired to keep productions running. These additional expenses can strain Paramount Global's financials, potentially impacting its profitability and cash flow.
A strike would disrupt the production of films, TV shows, and other content owned by Paramount Global. This disruption can result in delays in releasing new content, impacting the company's ability to generate revenue and meet audience demands. Investors may perceive this as a negative sign, potentially leading to a decline in the stock price.
What's Happening?
At a press conference held on Thursday, Fran Drescher, the president of the actors union, voiced her strong disapproval of the current situation. She emphasized that they perceive themselves as victims of a highly avaricious entity and expressed shock at the treatment they have received from their business partners.
The two unions have asserted their demand for comprehensive compensation across all production stages and have raised apprehensions regarding the incorporation of artificial intelligence in scriptwriting...Read More
According to data from Benzinga Pro, PARA has a 52-week high of $27.49 and a 52-week low of $13.80.
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