Media entrepreneur Byron Allen has submitted a US$14.3 billion bid to buy all of Paramount Global's outstanding shares. In detail, Allen offered US$28.58 each for the company's voting shares and US$21.53 for non-voting shares. Including existing debt, the total value of the deal amounts to roughly US$30 billion.
“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 US$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 Media Group said in a statement.
Byron Allen founded Allen Media Group (Entertainment Studios) in 1993. Headquartered in Los Angeles, it has offices in New York, Chicago, Atlanta, and Charleston, SC. Allen Media Group owns 36 ABC-NBC-CBS-FOX network affiliate broadcast television stations in 21 US markets and twelve 24-hour HD television networks serving nearly 220 million subscribers. Allen Media Group also produces, distributes, and sells advertising for 73 television programs, making it one of the largest independent producers and distributors of first-run syndicated television programming for broadcast television stations.
Shares of Paramount Global rose more than 13% in early trading Wednesday after the news of the bid. The stock was trading in heavy volume at over US$15/share – though still well under its 52-week high of US$25.93. By 11:15 AM enthusiasm had cooled, with the stock up 8.4% to US$14.84, Variety reported.