Paramount (NASDAQ:PARA) stock is climbing higher on Friday following news of National Amusements getting a major investment.
National Amusements has signed an agreement with BDT Capital Partners for a $125 million preferred equity investment. The company says that these funds will help it as it seeks to recover in a post-pandemic world.
This matters to Paramount investors as National Amusements is the majority shareholder of PARA stock. The investor specifically notes that it continues to remain dedicated to supporting Paramount.
Investors will note that this news comes as Paramount is going through a tough time. The global economy is stressing businesses and weighing on their stocks, PARA included. That resulted in the entertainment company cutting its dividend by nearly 80%, MarketWatch notes.
What This Means For PARA Stock
National Amusements’ ability to pay down its upcoming debts with this cash infusion puts it in a stronger position to support Paramount. That’s important for investors as it could help the entertainment company deal with what some expect to be a rough economy in the second half of 2023.
It also has investors excited today with some 10.3 million shares of PARA stock changing hands as of this writing. That’s quickly closing in on the company’s daily average trading volume of about 13.4 million shares.
PARA stock is rising 6.4% higher as of Friday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
