Skydance (NYSE:SKYD) Stock Gains as NASCAR on CBS Becomes Possibility

Entertainment giant Skydance (SKYD) may be planning to make a three-word phrase a reality: "NASCAR on CBS." NASCAR used to be a big part of the CBS lineup, until various changes left it in its current state, shown across several platforms and networks. But NASCAR has already been in talks with Skydance, who may be planning to bring the sport back to CBS's timeslots. Skydance stock gained nearly 4% in the closing minutes of Thursday's trading. Skydance has seen a 58.22% loss in its share price over the past year.

Go Fast, Turn Left, on CBS

The current television deal is in force through 2031, which means this deal—if it actually comes to fruition—may not mean much change for a while. But Skydance actually owns a bigger part of NASCAR rights than expected. TNT, for example, has a 10-race summer stretch, and TNT was a Warner property, now a Skydance property, since Warner is no longer publicly traded. The CW Network also broadcasts the NASCAR Xfinity Series, and Skydance owns a little under 20% of the CW Network, because both Warner and Paramount had a stake in it that combined under the merger.

And now that CBS Sports is part of TNT, there is a clear path forward that brings more NASCAR races to network television. But with Skydance looking to cut costs, it may not be able to put up the kind of cash necessary to secure those rights. But, again, with the current deal running through 2031, that gives Skydance several years to get its finances properly righted around to make some offers.

A Spanish Expansion

Meanwhile, Skydance took a step forward in Spain, calling on its partnership with Movistar Plus to create some branded content in-house. The deal runs for two years, reports noted, and the content produced therein will hit Movistar Plus and HBO Max in Spain, which makes sense given the recently-concluded merger.

Movistar CEO Alfonso Gomez Palacio noted, "This agreement strengthens our long-standing strategic partnership with Skydance and allows us to continue offering our customers one of the most comprehensive entertainment propositions in the market, combining the best user experience with some of the most recognized content and brands in the audiovisual industry."

Is Skydance a Good Stock to Buy Now?

Turning to Wall Street, analysts have a Hold consensus rating on SKYD stock based on three Buys, five Holds and four Sells assigned in the past three months, as indicated by the graphic below. The average SKYD price target of $10.19 per share implies 40.59% upside potential.