Photo by BoliviaInteligente on Unsplash
Byron Allen Makes $14.3 Billion Bid for Paramount Global
January 31, 2024
Media tycoon Byron Allen and his company, Allen Media Group, are making waves in the entertainment industry. The latest news is that their eye is on Paramount Global, and they’ve come knocking with a jaw-dropping $14.3 billion bid to buy all of the company’s outstanding shares. The offer incited an impressive 13.5% surge in Paramount Global stocks.
It seems Allen is not looking to buy just a chunk of the company. He’s ready to take it all, offering a whopping $28.58 per voting share — a considerable 50% premium on recent trading values — and $21.53 for non-voting shares. All these figures add up to a total deal value of around $30 billion, including existing debt. However, it’s still uncertain how Allen will fund this takeover.
National Amusements, Paramount’s holding company, currently holds about 10% of Paramount’s equity capital value and a majority (77%) of voting shares. Shari Redstone, as non-executive chairwoman of Paramount Global and the company’s controlling shareholder, has a history of believing the business is worth more than market value or third-party offers.
This isn’t Allen’s first dance with Paramount. He made a $3.5 billion bid for its BET and VHF channels last year and has shown consistent interest in the media house. Considering Redstone’s past and the magnitude of the offer, analysts predict a possible bidding war with Warner Bros. Discovery, which has also shown interest in acquiring the company.
If the deal goes through, Allen’s strategy involves selling off the Paramount film studio that boasts hits like “Top Gun: Maverick,” the “Mission Impossible” franchise, and recent successes like “Smile” and “Paw Patrol.” He also plans on selling real estate and other intellectual properties but aims to keep the TV channels and Paramount+ streaming service, hoping to run them more efficiently.
Despite recent gains, Paramount has been struggling to keep its streaming business afloat, reporting a loss of $238 million in the last quarter. Just last week, it announced layoffs in an effort to operate as a leaner company and reduce spending.
Paramount’s potential sale has long been rumored. Several firms like Skydance Media, Apollo Global Management, and Warner Bros. Discovery have been suggested as interested buyers.
Recent News
Media Giants Depend on Sports As Content Shortages Rise
As Hollywood emerges from last year’s strikes, major media companies are turning to live sports to attract audiences and advertisers. This trend was evident during this year’s Upfront presentations, where media giants showcased their upcoming content and advertising opportunities.
New Trader Joe’s Opens in SF After 10 Years
San Francisco’s Hayes Valley neighborhood welcomed a highly anticipated new addition on May 17, 2024, with the grand opening of a Trader Joe’s at 555 Fulton St., on the corner of Laguna Street. This event marks the end of a decade-long wait for residents who have been eagerly looking forward to a new grocery store in their area.
China’s Property Market Boost: Stocks Surge, Copper Hits Highs
The Chinese government unveiled a comprehensive support package that has sent ripples through financial markets. This initiative includes a slew of measures aimed at stimulating housing demand and addressing the excess inventory burdening developers. The immediate impact was a significant rally in Chinese stocks and a surge in commodity prices, notably copper, which hit record highs.
Mercedes-Benz Workers in Alabama Reject Union
In a pivotal moment for autoworkers in the southern United States, employees at a Mercedes-Benz plant in Alabama have voted against joining the United Auto Workers (UAW) union. The outcome, with 56% of workers voting against unionization and 44% in favor, comes as a significant setback for the UAW’s efforts to expand its influence in the region.