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Paramount Board Mulls Sale as Byron Allen Submits $14B Buyout Bid
Media mogul Byron Allen has submitted a $14.3 billion offer to buy Paramount Global, the owner of the Paramount+ streaming service, CBS, and cable networks including MTV, BET, Nickelodeon, and Comedy Central.
The Paramount board has formed an independent committee to consider strategic alternatives, including a possible auction of the company.
- Byron Allen offers $14.3 billion to buy Paramount Global.
- Paramount board forms an independent committee to explore strategic alternatives.
- Paramount+, CBS, MTV, BET, Nickelodeon, and Comedy Central are part of Paramount Global.
- Shari Redstone, the media heiress who owns a controlling stake in Paramount, isn’t on the committee.
- Allen plans to sell Paramount‘s film studio, real estate, and other IP while keeping the TV properties.
- Apollo Global Management and Skydance are among the prospective bidders for Paramount.
- Redstone prefers to sell the entire company, including the holding company National Amusements.
- Skydance CEO David Ellison may require an agreement to buy Paramount Pictures.
Potential Impact on Paramount+
If Byron Allen‘s bid is successful, he plans to sell Paramount‘s film studio, real estate, and other intellectual property while keeping the TV properties, including Paramount+. Allen believes he can run the TV properties more cost-efficiently.
It is unclear how a sale of Paramount would affect Paramount+. Allen could continue to operate the streaming service as is, sell it to another company, or discontinue it altogether.
Shares of Paramount Global Rise
Shares of Paramount Global rose more than 6% Wednesday after news of Byron Allen‘s offer. Investors are betting that the company could fetch a higher price in a sale than its current market value of $9.7 billion.
Analysts Weigh In
Analysts are divided on the likelihood of Byron Allen‘s bid succeeding. Some believe that Allen has the financing and the experience to pull off the deal, while others are skeptical.
Mario Gabelli, a legendary investor who owns a stake in National Amusements, said he liked the fact that Allen was offering a premium to all Paramount shareholders. However, he expressed skepticism about whether Allen had the necessary financing.
Steven Cahall, a Media analyst with Wells Fargo, said he believed that Allen was credible and that his offer was a serious one. Cahall said that Allen‘s diversified media company, which includes plenty of linear TV, would be a good fit for Paramount.
The future of Paramount Global and its Paramount+ streaming service is uncertain. Byron Allen‘s bid has thrown the company into play, and it is unclear who will ultimately own it.
Investors should keep a close eye on this developing story. Paramount Global is a major Media company with a valuable portfolio of assets, and a sale could have a significant impact on the media landscape.