The entertainment name received a $14.3 billion takeover offer from Byron Allen
Paramount Global (NASDAQ:PARA) has been the focus of potential M&A talks recently, with Warner Bros (WBA) jumping in last month to discuss a prospective deal. Today, the entertainment company received a $14.3 billion takeover offer from American businessman Byron Allen.
In response, Paramount stock is surging today, up 11.6% at $15.26 at last check. This pop has the stock jumping into positive territory for 2024, though it's still sporting a 34% year-over-year deficit. It's worth noting that PARA's 320-day moving average, which the stock hasn't broken above since 2021, capped its December rally and still lingers overhead at the $17 level.
Over in the options pits, 29,000 calls and 22,000 puts have been exchanged so far today, which is five times the intraday average amount. The March 12.50 put is the most active contract, and also happens to be the second most popular open interest (OI) position. New positions are being opened at the April 16 put and weekly 2/2 15.50-strike call.
A bout of short covering could push the shares higher, too. Short interest is up 12.9% over the past two weeks, and now represents 13.9% of the stock's available float, or roughly five days' worth of buying power.