Byron Allen makes a $30 billion bid for Paramount Global
Byron Allen entered the fray for Paramount Global, making a $30 billion bid to buy out the company’s outstanding shares and existing debt.
The offer, first reported by Bloomberg News, comes from Allen Media Group and unnamed “strategic partners,” according to a statement from Allen Media Group.
“Mr. Byron Allen has made an offer on behalf of Allen Media Group and its strategic partners to purchase all of Paramount Global’s outstanding shares. We believe this $30 billion offering, which includes debt and equity, is the best solution for all Paramount Global shareholders,” Allen Media Group said. The offer must be taken seriously and followed up on.”
A representative for Paramount Global declined to comment.
Allen Media Group will undoubtedly face an uphill climb in its pursuit of the storied studio. The company has been at the center of merger and acquisition speculation for months. David Ellison’s Skydance Media company has been circling a deal for months to take control of Paramount Global by acquiring preferred voting shares held by controlling shareholder Shari Redstone through its holding company National Amusements Inc. Warner Bros. also conducted Discovery also has at least one informal discussion with top leadership about the possibility of a merger although those rumors have died down in recent weeks.
As of Tuesday, Paramount Global’s market cap was $9.13 billion, and the company’s debt load was just over $15 billion. Paramount, like other traditional media giants, has struggled with the rise of streaming and the slow but steady decline of linear broadcast and cable assets that have long been the biggest source of profits for legacy Hollywood studios.
Allen Media Group’s public statement of the offer may have the effect of forcing Paramount Global and National Amusements to publicly address the ongoing stream of rumors about a potential deal. So far, Paramount Global and NAI have not made any public statements with any details about the Skydance talks or the approach WB Discovery is taking. Last week, Paramount Global CEO Bob Bakish acknowledged the overall market speculation in a memo to all employees. He noted that the company’s future “remains a subject of speculation” but urged employees to remain focused. “But I have always believed that the best thing we can do is focus on what we can control: execution. Leaning into what works, while constantly adapting to current realities.
Paramount Global’s major assets include Paramount Pictures, CBS, Nickelodeon, MTV, VH1, Comedy Central, BET Networks, and international broadcast networks such as Channel 5 in the United Kingdom and Television Argentina. Allen Media Group owns The Weather Channel, 27 local TV stations in small and medium-sized markets and less topical cable channels such as Cars.TV, Comedy.TV, Justice.TV and Pets.TV.