Viewing history is a valuable thing in streaming. It tells you what you have already seen, and lets streamers know what is most likely to be streamed in the future. But entertainment giant Paramount Global (PARA) has some troubles on its hands over the viewing history, leading to a lawsuit.
A new class-action lawsuit is in the making over Paramount’s use of viewing history. Apparently, Paramount was handing over copies of users’ viewing history to several social media platforms, including Meta Platforms (META) and TikTok. Those platforms then used the information to do exactly what you would think: offer up targeted ads connected to the person’s viewing history.
Such a move might sound like business as usual, but according to the lawsuit filed in a California federal court by local resident Victor Cho, such a use of streaming history is illegal. It defies the Video Privacy Protection Act, which forbids the revealing of such history. The act comes with “…statutory damages of up to $2,500 per class member and carries a private right of action for consumers to sue,” the report noted.
Activist Investor Targeted?
We all know that some investors have been displeased with the handling of Paramount’s Skydance merger. In fact, there may well be some other lawsuits to come out of that before all is said and done. But a report noted that activist investors may be targeting Paramount.
A report from the U.S. Securities and Exchange Commission (SEC) revealed that Gamco Investors decreased its stake in Paramount, calling on the company to reconsider the offer for it from Project Rise Partners, which put forward $13.5 billion in cash, including $5 billion in debt restructuring.
Is Paramount Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on PARA stock based on three Buys, six Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 12.79% loss in its share price over the past year, the average PARA price target of $12.67 per share implies 16.51% upside potential.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
