Allen Media offers to acquire Paramount Global in $30B deal

Byron Allen’s Allen Media Group has made a $30 billion offer for Paramount Global’s assets. 

The deal is structured as $14.3 billion to purchase all of Paramount’s outstanding shares plus assuming all of the company’s debt. Other, unnamed “strategic partners” would be part of the deal, according to the offer.

Allen also offered $28.58 for voting shares of Paramount, which is about 50% above recent trading value, and $21.53 for nonvoting shares, according to multiple sources.

When accounting for outstanding debut, the total value of the deal hits the $30 billion mark.

Paramount reportedly has a growing list of companies and organizations interested in buying it. It, like many others in the media space, has significant debt and investors are concerned about the ability for legacy media companies to compete in a rapidly changing landscape. 

Paramount had $1.87 billion in income during nine months in 2023, which was down 30% over the previous year. Ad sales were flat at $22 billion. 

Other reports indicate that, should the deal go through, Allen might spin-off Paramount’s studio properties but hold on to its networks and Paramount+ streamer. His stated goal would be to operate them more cost-effectively.

Neither AMG or Paramount responded to request for comment from multiple outlets. 

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Warner Bros. Discovery was previously reported as being interested in acquiring Paramount and the two offers could spark a bidding war, though at least some analysts suspect that would be an upward battle for AMG.

AMG would likely need to borrow heavily to close the deal and high interest rates could end up making that more challenging. 

Allen has gone after other big deals in recent memory, including trying to buy Paramount’s BET and VH1 channels. 

He also attempted to put together financing to spend $10 billion to buy ABC, its owned stations group, FX and National Geographic TV properties from Disney. He also tried to buy local stations from E.W. Scripps; none of these deals closed.

Allen Media Group currently owns 22 TV stations, The Weather Channel and a portfolio of diginets including JusticeCentral.tv, Pets.tv and Cars.tv. Most of the diginets and their original productions are low-budget.

Paramount Global is currently controlled by National Amusements, which owns around 10% of the company’s equity capital value and h0lds 77% of the voting shares. Those are valued around $1 billion.