Byron Allen, 62, media entrepreneur and CEO of Entertainment Studios and Allen Media Group has submitted a $30 billion takeover offer to buy the film and TV Giant, Paramount Global.

This offer represents a 50% premium to the recent trading price of the company’s outstanding stock. The deal would involve Allen paying $28.58 per voting share and $21.53 for each non-voting share. Hence, the total value of the outstanding shares is $14.3 billion, and the remainder of the $30 billion offer would go toward existing debt. 

Allen, 62, has always expressed his key interest in Paramount when last year, he made a $3.5 billion bid for its BET and VHF channels. 

“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,” Allen’s company said in the statement.

Previously, it was also rumored that Skydance Media, run by David Ellison would be closing the deal with Paramount. However, there are no official comments on this deal from Paramount Global.

Allen’s bid, which was made through his company Allen Media Group, has the potential to reshape the entertainment industry landscape.

According to sources, Allen’s strategy involves selling Paramount film studio, real estate, and select intellectual property. While, he plans to retain ownership of the TV channels, including the Paramount+ streaming service, and operate them with a focus on cost efficiency.

Paramount Global Stocks Reach New Highs Post Byron Allen’s Acquisition News

When Bloomberg News first reported the news that Byron Allen, 62, had made a $14.3 billion bid to buy all of the outstanding shares of Paramount Global, the stock prices showed a drastic change.

Source: Yahoo Finance

The offer news caused the stock to skyrocket by more than 8% at $14.78 in early trading. This was after a 52-week low performance.

According to the sources, Paramount Global, also known as PARA, currently has a market capitalization of approximately $8.4 billion to $9.93 billion.

Despite the stock surge, the film and TV giant, Paramount Global has not provided official comments on the bid. However, the market’s response to the offer reflects the potential impact of this development on the future of Paramount Global and the broader media sector.

Byron Allen Succesful Acquisitions From The Past

Having a history of successful takeovers has positioned Byron as a prominent figure in the media industry. Some of the notable companies he has acquired in the past include:

• Black News Channel – In 2022, Allen purchased the Black News Channel, which he subsequently renamed TheGrio.
• Local TV Stations: Through his company, Allen Media Group, he acquired several local TV stations, including WCOV-TV, WIYC, and WALE-LD, all serving Montgomery, Alabama, from Woods Communications
• Tegna: In March 2020, the Allen Media Group offered $8.5 billion to acquire Tegna, the former broadcasting arm of Gannett.

Apart from these, the “Entertainers with Byron Allen” host has made several other acquisition attempts, including a $10 billion bid for the ABC television network, several local stations, and the cable channels FX and National Geographic, as well as a $3.5 billion bid for Paramount’s BET and VHF channels.

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