Byron Allen Offers $30 Billion for Paramount Global in Media Shake-Up

Media entrepreneur Byron Allen has made a surprising move by submitting a $30 billion offer to acquire media conglomerate Paramount Global, including debt and equity. The offer, made through Allen Media Group, aims to buy all outstanding shares of Paramount Global, as reported by Bloomberg News. Paramount Global has not yet commented on the offer.

Investors have responded positively to the news, with Paramount Global’s stock rising more than 13% in early trading. Allen Media Group is offering a 57% premium over the previous closing price for Paramount Global’s Class B nonvoting stock, and $28.58 per share for the Class A voting stock. The $30 billion offer includes the assumption of debt, and Allen Media Group has secured strategic partners to finance the transaction.

If the deal goes through, Byron Allen plans to sell off Paramount Pictures, real estate assets, and some intellectual property, while retaining the company’s TV networks and streaming service, Paramount+. He aims to operate these on a more cost-efficient basis. However, there are other potential bidders, including RedBird Capital, who is in talks to acquire Shari Redstone’s National Amusements Inc., which holds a controlling stake in Paramount Global.

The financing behind Allen’s bid remains unclear, which raises questions about its credibility. Without financing details, it’s uncertain how this offer will impact other ongoing processes for Paramount Global and National Amusements Inc.’s controlling stake. Analysts point out that Paramount Global’s fundamentals are currently challenged, with a decline in advertising and viewership for its TV business and ongoing losses in the streaming division.

Byron Allen’s bid for Paramount Global follows his previous attempt to acquire the media conglomerate in December. Allen Media Group, based in Los Angeles, already owns 12 cable networks, a theatrical movie distribution company, and 28 broadcast stations. They produce, distribute, and sell advertising for 73 TV shows. Paramount Global is scheduled to release its Q4 2023 earnings at the end of February.

This bid marks a significant development in the media industry landscape and highlights ongoing consolidation efforts. It will be interesting to see how the situation unfolds and whether other potential bidders will come forward.