Businessman, film and TV producer, and comedian Byron Allen has made a $30 billion offer (including debt) for Paramount Global through his company Allen Media Group. Paramount Global is the parent company of CBS and several cable channels such as Nickelodeon.
As part of the deal, it is estimated that Allen is offering $28.58 each for the voting shares of Paramount (a 50% premium to the company’s recent trading prices) and $21.53 for the non-voting shares.
There is reportedly a list of parties that are interested in buying Paramount. The company is currently controlled by Shari Redstone and her family. Another party interested in buying Paramount is independent producer David Ellison. Allen plans to financial this deal through a combination of secured and unsecured senior debt and equity.
Prior to this offer, Allen Media Group also made bids for Paramount channels BET and VH1. Last year Allen Media also made a $10 billion offer to Disney to buy the ABC network along with several cable channels. Allen Media Group currently owns 22 TV stations and The Weather channel.
KEY QUOTE:
“We are highly confident that if we have full access to the company’s internal due diligence information, we will be able to structure the capital structure to best provide for the company’s future growth prospects,”
“This $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.”
– Letter from Allen Media
