Media mogul Byron Allen has reportedly made a $14.3 billion offer to acquire the entire outstanding share of Paramount Global
What Happened: Allen's company, Allen Media Group, confirmed the offer in a statement to Bloomberg on Tuesday. The offer includes $28.58 for each voting share, a 50% premium to recent trading, and $21.53 for non-voting shares. The deal's total value, including existing debt, amounts to approximately $30 billion.
Paramount, a key asset in the global media empire controlled by the Redstone family, has been the subject of acquisition discussions for months. The company's operating income before depreciation and amortization declined 30% in the first nine months of the previous year, with sales remaining flat at $22 billion.
Paramount and Allen Media Group are yet to respond to the queries sent by Benzinga.
According to sources, Allen's plan involves selling off the Paramount film studio, real estate, and some intellectual property while retaining the TV channels, including the Paramount+ streaming service, and running them more cost-efficiently. He has reportedly secured backing from banks and other investors.
Why It Matters: The offer comes at a crucial time for Paramount Global, which has been facing internal restructuring and acquisition interest. In January, the company announced a significant workforce reduction that would affect hundreds of employees across all divisions. This move came amid acquisition interest and internal restructuring.
Paramount and other entertainment giants have suffered substantial losses from their streaming services, leading to discussions about possible mergers and cost cuts.
Allen had previously made an ambitious $10 billion offer for Disney's
