** Paramount shares PARA.O gain 3% to $17.3 in early trading, adding to Friday's 12% surge on takeover chatter
** Reports on Friday suggested Skydance Media boss David Ellison and investment firm RedBird Capital are interested in National Amusements, the Shari Redstone-led media company that owns 77% of Paramount's Class A voting shares
** "Our sum-of-the-parts math suggests PARA's equity could be worth ~$38 per share if the firm's , production assets and DTC business were sold individually," Citi strategist Jason Bazinet said on Friday
** Citi estimates PARA's cable are worth ~$7.4 bln, broadcasting business at ~$12.1 bln, production assets at ~$18 bln and DTC business at ~$6.8 bln
** Citi, which has PT of $19, estimates firm could be worth $38.8 bln; company closed Friday with a market cap of $11.13 bln
** Wells Fargo raises PT to $15 from $12 but says it could hit $23/shr if there is more divestiture
** "If correct, RemainCo would be CBS Studios, Paramount Studios, content creation from Taylor Sheridan/Nickelodeon/MTV, etc" - Wells Fargo
** Wells Fargo says it expects other media with M&A potential such as Warner Bros Discovery WBD.O and Lions Gate Entertainment LGFa.N to trade higher
(Reporting by Sruthi Shankar in Bengaluru)