Businessman Byron Allen makes $30 billion bid for Paramount Global

The sum includes both the $15 billion of the company's debt and another $14.3 billion in capital.

Sede del edificio de Paramount Global situado en Nueva York. — (Cordon Press)

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31 de enero, 2024

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Media mogul Byron Allen made a $30 billion bid for Paramount Global on Wednesday. Specifically, sources familiar with the negotiations revealed, the sum includes both the $15 billion that the company has accumulated in debt and another $14.3 billion in capital.

The company Allen Media Group assured that the businessman would thus pay 28.58 for each of Paramount's voting shares, 50% more than what was offered in recent offers. Additionally, non-voting shares would be worth $21.53 per share.

In total, Byron Allen, owner of The Weather Channel as well as other local television stations, would buy all of Paramount Global's assets for $30 billion, as his own company explained in a statement to The Hollywood Reporter:

Mr. Byron Allen did submit a bid on behalf of Allen Media Group and its strategic partners to purchase all of Paramount Global’s outstanding shares. We believe this $30 billion offer, which includes debt and equity, is the best solution for all of the Paramount Global shareholders, and the bid should be taken seriously and pursued.

The news comes just a month after rumors began that Paramount Global's salvation would involve merging with another large entertainment company, Warner Bros. Discovery.

Allen's plans for Paramount Global

Byron Allen already has a plan in mind for Paramount Global. His intention, Bloomberg reports, is to sell the Paramount Pictures film studio as well as some of the real estate and some other intellectual property. He would keep the various television channels under its umbrella, including the streaming platform Paramount Plus, which he would run "more profitably."

The news of the possible acquisition has been received favorably by shareholders. According to Variety, Paramount Global shares rose nearly 13% this Wednesday, with each share reaching $15, although still well below the company's maximum value of $25.93 per share reached 52 weeks ago.