Ed Marshall Photography for Gravy/AMG
Shares of Paramount Global surged in early trading following the announcement that Byron Allen has proposed a $30 billion deal to purchase the company. The stock increased by almost 8% to $14.78 amid a generally declining market. Speculation about the acquisition has driven the shares up from a 52-week low of $10.
According to Deadline, media mogul Byron Allen, who currently owns The Weather Channel and previously pursued BET, has expanded his offer to acquire Paramount Global, which is currently attracting attention from other potential buyers such as David Ellison and Skydance. However, Ellison’s focus is on acquiring Shari Redstone’s stake in National Amusements rather than directly taking over Paramount Global. Some Paramount Global shareholders have expressed dissatisfaction with the NAI route, as it would not provide them with a premium for their stock in the acquisition.
An overnight statement from Allen Media Group stated: “Mr. Byron Allen did submit a bid on behalf of Allen Media Group and its strategic partners to purchase all of Paramount Global’s outstanding shares. We believe this $30 billion offer, which includes debt and equity, is the best solution for all of the Paramount Global shareholders, and the bid should be taken seriously and pursued.”
Allen is reportedly interested in acquiring the television assets and Paramount+, while Ellison is primarily interested in the studio. Par CEO Bob Bakish mentioned in a recent town hall and memo that the company would consider all available options. Bakish noted that amidst the ongoing changes, Paramount remains a subject of speculation; however, he emphasized the importance of concentrating on internal execution. When questioned about the acquisition rumors, Bakish acknowledged that rival companies were showing interest, which he attributed to the Paramount Global team’s exceptional work.
Reportedly, Allen has offered $28.58 for each Paramount voting share (primarily Redstone/NAI stake) and $21.53 for each nonvoting share. The proposed deal includes assumption of Paramount’s approximately $15 billion debt, bringing the total value to $30 billion.
