Byron Allen's Allen Media Group Aims for Paramount Global with $30 Billion Offer

Media mogul Byron Allen has surprised the market by making an unsolicited $30 billion acquisition offer for Paramount Global through his company, Allen Media Group. This unexpected bid led to a surge in Paramount Global's stock by over 13%. Despite cooling enthusiasm later in the day, the stock remained up 8.4%. Allen Media Group's offer includes $21.53 per share for Class B nonvoting stock, representing a 57% premium over the closing price on January 30. For Class A voting stock, the offer is $28.58 per share. The proposed deal involves strategic partners funding the acquisition, though details remain unclear.

If successful, Allen plans to sell off Paramount Pictures and real estate assets while retaining TV networks and the Paramount+ streaming service, operating them more cost-effectively. However, the bid faces competition from Skydance Media's David Ellison, who is also interested in acquiring Paramount Global. Analysts question the credibility of Allen's offer due to the lack of financing details. They highlight the challenging fundamentals of Paramount Global's TV business, including CBS, Nickelodeon, MTV, Comedy Central, and BET, which have seen declining advertising and viewership. Paramount Global is set to release Q4 2023 earnings on February 28. Allen's unexpected move follows his December attempt to acquire BET Media Group for $3.5 billion, which did not materialize.