Elgin Nelson
Media mogul Byron Allen has proposed a $30 billion acquisition of Paramount Global’s outstanding shares with his company, Allen Media Group. Paramount Global’s stock surged up to 13.5% following the news, and considering Paramount Global’s existing debt, the overall deal is estimated to be $30 billion.
Allen has consistently shown interest in the company, notably by his $3.5 billion bid for its BET and VHF channels that he proposed last year.
“We think [Paramount] should immediately take this deal,” a Keybanc analyst said. “A cash offer is likely highly appealing—however, we expect the stock to trade with a large discount to the reported offer, or a willing third party, is willing to offer.”
According to reports, Allen intends to sell the Paramount film studio, known to produce production of blockbuster films like “Top Gun: Maverick” and the “Mission Impossible” franchise, as well as the recent hit thriller “Smile” and the family-friendly “Paw Patrol.”
In addition to the studio, he aims to sell real estate and certain intellectual property assets, while opting to retain ownership of the TV channels and Paramount+ streaming service. Allen plans to also oversee these assets with a focus on implementing more cost-efficient operations.
Allen, once a stand-up comedian, now owns The Weather Channel, local TV stations, The Grio, and a syndicated TV content business through AMG. Known for his assertive negotiating style and unwavering business growth ambitions, Allen expanded AMG by adding new board members last year to explore further expansion opportunities.
Allen was also among the bidders (alongside Tyler Perry and Sean “Diddy” Combs) who explored acquiring BET from the company before it decided not to part ways with the division.
Before becoming a entertainment mogul, Allen started his career in comedy at age 14 by pitching jokes to comedians Jay Leno and David Letterman before later appearing on “The Tonight Show” in 1979, becoming the youngest comedian to appear on the show at 18 years old.