Most unexpected was Paramount stock’s jump. Wall Street almost always disdains giant acquisitions on the theory that buyers get too excited about big deals and overpay—and indeed, that’s usually what happens. When the deal gets sealed, the buyer’s stock usually drops, but in this case it rose almost 30%. That’s probably because analysts were pleasantly surprised: They had figured Paramount would need to raise its offer from $30 to $32–$34 a share to vanquish Netflix; instead, Paramount offered just $31 and prevailed.
“One of our owners down in Addison, in Dallas, has been part of the system for 20 years,” Brewster notes. After leaning into corporate support by developing a marketing plan with the home office, using sales tools and investing in technology, the franchise owner “had explosive growth. Last year, he saw gross sales just skyrocket in the 80% range,” Brewster shares.
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