Coatue Invests $38 Million in Paramount

Philippe Laffont's Coatue Management has made a significant investment in Paramount Global, acquiring over 3 million shares valued at more than $38 million during the second quarter of 2024. This move comes at a challenging time for the legacy media company, which is navigating a potential merger with Skydance Media. Paramount's stock has faced considerable pressure, dropping over 30% year-to-date, with an 11% decline in the second quarter alone. The merger agreement, reached last month, includes a 45-day period during which Paramount's board may consider alternative buyers. In preparation for this merger, the company announced a 15% reduction in its U.S. workforce, further highlighting the tumultuous environment in which Laffont has chosen to invest. His entry into Paramount reflects a strategic bet on the company's future amidst ongoing volatility. In addition to his stake in Paramount, Laffont expanded his holdings in other technology firms, significantly increasing investments in Qualcomm, Adobe, and Dell, which are now among his top ten largest positions. Conversely, he divested from several companies, including Baidu, Block, and General Motors, and reduced his stake in Meta Platforms by about 3%, although it remains his largest holding at over $2 billion. Laffont's investment strategy appears to be focused on capitalizing on market weaknesses while adjusting his portfolio to reflect changing dynamics in the tech and media sectors.