Paramount stock slumps 8.51% on request of Equity Raise

Paramount Global's ( PARA ) shares plummeted by 8% on Thursday following news reports that it may require an infusion of new equity of up to $3 billion to merge with Skydance Media. The reports are based on information provided by sources familiar with the deal. The founder of Skydance Media, and his associates are expected to provide a significant portion of the equity needed, but it would be dilutive.

The merger discussions come as Shari Redstone, the controlling shareholder of Paramount ( PARA ), is reportedly in exclusive talks with Ellison to sell her stake to him. The two firms are also said to be exploring the possibility of a merger.

The Wall Street Journal reported that Apollo Global Management had made an all-cash offer of $26 billion to acquire Paramount, which was turned down. Redstone is seeking to sell the company, as it is in talks about being acquired by Warner Bros Discovery. Paramount's ( PARA ) parent company, MTV, and CBS have a market capitalization of nearly $10 billion and approximately $13 billion in net debt.

Technical Outlook
Paramount Global ( PARA ) shares are trading below the 200-day Moving Average (MA) with a Relative Strength Index (RSI) of 54.72 indicating sellers sentiment.