Photo by BoliviaInteligente on Unsplash
Byron Allen Makes $14.3 Billion Bid for Paramount Global
January 31, 2024
Media tycoon Byron Allen and his company, Allen Media Group, are making waves in the entertainment industry. The latest news is that their eye is on Paramount Global, and they’ve come knocking with a jaw-dropping $14.3 billion bid to buy all of the company’s outstanding shares. The offer incited an impressive 13.5% surge in Paramount Global stocks.
It seems Allen is not looking to buy just a chunk of the company. He’s ready to take it all, offering a whopping $28.58 per voting share — a considerable 50% premium on recent trading values — and $21.53 for non-voting shares. All these figures add up to a total deal value of around $30 billion, including existing debt. However, it’s still uncertain how Allen will fund this takeover.
National Amusements, Paramount’s holding company, currently holds about 10% of Paramount’s equity capital value and a majority (77%) of voting shares. Shari Redstone, as non-executive chairwoman of Paramount Global and the company’s controlling shareholder, has a history of believing the business is worth more than market value or third-party offers.
This isn’t Allen’s first dance with Paramount. He made a $3.5 billion bid for its BET and VHF channels last year and has shown consistent interest in the media house. Considering Redstone’s past and the magnitude of the offer, analysts predict a possible bidding war with Warner Bros. Discovery, which has also shown interest in acquiring the company.
If the deal goes through, Allen’s strategy involves selling off the Paramount film studio that boasts hits like “Top Gun: Maverick,” the “Mission Impossible” franchise, and recent successes like “Smile” and “Paw Patrol.” He also plans on selling real estate and other intellectual properties but aims to keep the TV channels and Paramount+ streaming service, hoping to run them more efficiently.
Despite recent gains, Paramount has been struggling to keep its streaming business afloat, reporting a loss of $238 million in the last quarter. Just last week, it announced layoffs in an effort to operate as a leaner company and reduce spending.
Paramount’s potential sale has long been rumored. Several firms like Skydance Media, Apollo Global Management, and Warner Bros. Discovery have been suggested as interested buyers.
Recent News
New Starbucks Artist Collaboration Merch Announced
Inspired by personal experiences and cultural heritage, artist Monyee Chau brings forth a collection under the Starbucks Artist Collaboration Series set to debut this summer.
FDA Says Eating Yogurt May Help With One Common Disease
The Food and Drug Administration claims that yogurt could help with one common disease, but there’s a catch as to not mislead consumers.
Climeworks Unveils ‘World’s Largest’ Carbon Capture Plant
Amidst the global climate crisis, a groundbreaking solution emerges: the inauguration of the world’s largest carbon capture plant, “Mammoth,” in Iceland. Developed by Climeworks, this plant marks a significant stride in the pursuit of curbing planet-heating emissions.
Palmer Candy Company Recalls 29 Products for Possible Salmonella Contamination
The Food and Drug Administration (FDA) has recalled 29 of Palmer Candy Company’s white-coated confectionary items because of the potential for salmonella contamination.