Paramount Global’s stock saw a big jump, over 13%, when news broke that Byron Allen, a big name in media, wants to buy the company for $30 billion. This offer pushed the stock price up to more than $15 per share, but it’s still not as high as its yearly peak of $25.93.
Allen’s company, Allen Media Group, proposed buying Paramount Global’s shares at a much higher price than before the offer. He’s willing to pay $21.53 for each Class B share, which doesn’t allow voting, and $28.58 for each Class A share, which does allow vote. This deal also includes taking on the company’s debt. Allen Media mentioned it has partners ready to help finance this big purchase.
Paramount Global, when asked, chose not to comment on the matter.
If Allen manages to buy Paramount, he plans to sell parts of it, like Paramount Pictures and some property and rights, but keep the TV networks and the Paramount+ streaming service. He aims to run these parts more efficiently. At the same time, there are rumors that Paramount Global might lay off many employees in early 2024.
However, Allen isn’t the only one interested in buying Paramount. David Ellison from Skydance Media also wants to buy a big share in Paramount Global.
In addition to this, Allen tried to buy BET Media Group from Paramount for $3.5 billion in December, but that didn’t succeed.
Paramount Global, which owns big TV channels like CBS, Nickelodeon, MTV, Comedy Central, and BET, is facing less advertising and viewership. Their streaming service isn’t making money yet. They had a debt of $15.6 billion as of September. They’re planning to announce their earnings for the last quarter of 2023 on February 28.
Paramount Global Stock Boosted by Byron Allen’s $30 Billion Buyout Overture https://t.co/cLR3MzQ4f9 via @variety
— Todd Spangler (@xpangler) January 31, 2024
Allen Media Group, located in L.A., owns 12 cable networks, including the Weather Channel, a movie distribution company, and 28 TV stations. They also make, distribute, and sell ads for 73 TV shows. Source
