LOS ANGELES — He’s stated on multiple occasions that he seeks to own the largest collection of broadcast television stations in the U.S. Some industry observers question how he’ll be able to do so, from a financial perspective.
Now, Byron Allen, who did not succeed in seeking to obtain TEGNA as its planned merger with the Soohyung Kim-bankrolled Standard General fizzled in 2023, has made a bid for a significant interest in the owner of CBS News & Stations.
“Mr. Byron Allen did submit a bid on behalf of Allen Media Group and its strategic partners to purchase all of Paramount Global‘s outstanding shares,” a company spokesperson shared in a statement provided to RBR+TVBR, and all media organizations. “We believe 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.”
The “$30 billion offer” was first reported late Tuesday by Bloomberg. Subtract the debt to be assumed by AMG, and the offer is for an acquisition of all outstanding voting shares of Paramount Global at a $28.58 price, and all outstanding non-voting shares at $21.53.
That’s a huge premium, and investors reacted strongly in early trading on the Nasdaq market, with “PARA” leaping 12.1% to $15.31 as of 10am Eastern on the report.
Should Allen’s bid prove successful, undisclosed individuals close to AMG told Bloomberg that he would spin the Paramount film studio and real estate, in addition to some other intellectual property. Thus, AMG would focus on CBS News & Stations assets and the Paramount+ streaming service, bridging those assets with the Local Now FAST channel platform and AMG’s broadcast stations, which include KITV-4 in Honolulu, among other properties.
In the eyes of Wells Fargo analyst Steven Cahall, the offer from Allen is “credible.” Why? “Investors have viewed Allen’s prior media M&A offers as longer shots due to financing. However, those deals didn’t always have willing sellers.”
Cahall was referring to prior bids for ABC and for the BET unit of Paramount. Those situations weren’t the same as with Paramount Global, which has been more transparent about its desires to find a buyer. “This could put pressure on the board to explore options that benefit everyone,” Cahall said.
Cahall did not mention Allen’s failed bids for the Denver Broncos and Washington Commanders National Football League clubs, respectively.
Meanwhile, the Nick App, a dedicated offering for the Nickelodeon channel owned by Paramount, has been discontinued as of today.
