Byron Allen Proposes $14B Bid for Paramount Global

Paramount Global, the parent company of media brands like CBS and Paramount+, has attracted an acquisition offer from Byron Allen's Allen Media Group. The bid, amounting to $30 billion, includes the assumption of Paramount's existing $15.6 billion debt, effectively valuing the equity at around $14.3 billion. The proposal by Allen, who already owns the Weather Channel and numerous other TV networks, is being considered by a newly formed independent committee of Paramount's board, distinct from Shari Redstone, whose company National Amusements holds a controlling stake in Paramount.

Allen's interest in Paramount is not new; last year, he proposed buying a majority stake in Paramount’s BET assets for $3 billion, which was declined. This new offer suggests a strategy that would involve selling Paramount Pictures, along with its real estate and other intellectual property, while retaining the television properties. Allen aims to manage the TV assets, including the Paramount+ streaming service, with greater cost efficiency.

As the news of the acquisition offer became public, Paramount Global's shares experienced a notable surge, increasing by over 10% and trading at more than $15 per share. The company has been exploring a shift in focus from traditional TV broadcasting to streaming, amidst a broader media landscape where companies are grappling with changing viewer habits and advertising revenue challenges. Other entities, including Skydance Media and Warner Bros. Discovery, have also reportedly shown interest in Paramount. The independent committee's response to Allen's proposal and any subsequent negotiations will determine the potential reshaping of Paramount Global's future.