Source: Greg Doherty / Getty
Media mogul Byron Allen has made a bold move with a $14.3 billion bid to acquire Paramount Global, as reported by The Post. Simultaneously, Paramount’s board, led by media heiress Shari Redstone, has initiated discussions about potential strategic alternatives, including a potential auction of the entertainment giant.
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The offer by Allen, who also owns the Weather Channel, includes acquiring all outstanding shares of Paramount Global and assuming the company’s $15.6 billion debt. Paramount Global, known for its movie studio, CBS, and cable networks like MTV, BET, Nickelodeon, and Comedy Central, experienced a more than 6% surge in its shares following the news.
Despite the positive response to Allen’s bid, some industry figures, like investor Mario Gabelli, express caution. Gabelli, who has a stake in National Amusements, the holding company controlling Paramount, emphasized the need to verify the funding behind Allen’s offer.
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If Allen successfully acquires Paramount Global, his plans reportedly involve selling the Paramount film studio, real estate, and other intellectual properties while retaining the TV assets, including the Paramount+ streaming service. Allen aims to operate the TV properties more efficiently.
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In a statement, Allen Media Group asserted that the $30 billion offer, encompassing debt and equity, provides the best solution for Paramount Global shareholders, urging serious consideration and pursuit of the bid.
This move follows Allen’s previous attempts at significant acquisitions in the TV industry, such as a $10 billion bid for Disney-owned ABC Television, an $8.5 billion offer for TV station owner Tegna, and an unsuccessful $3.5 billion bid for Black Entertainment Television. In response to skepticism about financing, sources indicate that Allen has secured a loan against the studio’s real estate, estimated to be around $3 billion.
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