für Deutsche Telekom Paramount Global is rising after takeover offer for Deutsche Telekom.
Paramount Global experiences a significant rise in stock prices in an otherwise weak market environment yesterday. The shares rose by 8% in afternoon trading for good reason: As reported by the news magazine Bloomberg, media entrepreneur Byron Allen has made a $30 billion bid for the company, including debt and equity.
Paramount Global – US media conglomerate Paramount was founded in 1978 and is headquartered in New York, USA. The company is one of the so-called „Majors,“ which are the five largest film studios in the US. The other four are Walt Disney, Universal Pictures, Warner Bros., and Colombia Pictures. Paramount produces blockbusters like Top Gun: Maverick, operates television studios such as CBS, MTV, or Nickelodeon, and also has its own streaming service, Paramount+.
In the third quarter, the group generated a net profit of $295 million on a revenue of $7.13 billion.
Media mogul reaches for Paramount Global According to reports, Byron Allen has shown a strong interest in Paramount Global. Born in Detroit, Michigan, Byron Allen is a well-known American businessman, former comedian, TV producer, philanthropist, and head of the American entertainment company Allen Media Group.
His Allen Media Group now includes The Weather Channel, among others. The entrepreneur is known for his aggressive negotiation tactics and his drive for expansion.
Allen is now offering $28.58 per share for voting Paramount stocks, which represents a 50% premium over the recent trading price. For non-voting shares, the entrepreneur is offering $21.53. Paramount Global is sitting on a debt pile of around $15 billion. Including the debt, the total value of the deal amounts to $30 billion.
Paramount representatives decline to comment While Allen’s company AMG confirmed the submission of an offer, Paramount representatives have remained silent. The owners of the famous film studio have so far declined to comment. Allen’s offer comes after Bloomberg reported last week that David Ellison had submitted a preliminary offer for National Amusements, the Redstone family’s company that controls the media giant. Ellison has also had talks with Paramount to merge his film and studio company Skydance Media into the media company.
Partial sales are planned According to the Bloomberg report, Allen plans to sell the Paramount film studio, real estate, and some other assets. However, the television channels, including the streaming service Paramount+, are expected to remain in the company’s portfolio. The media mogul has banks and other investors on his side to help finance the deal, according to media reports.
AMG focuses on growth through acquisitions With the acquisition of Paramount Global, Allen is continuing his expansion at full speed. The businessman has shown interest in buying several media companies in recent years. In September last year, it was reported that Allen had made a $10 billion bid to buy the ABC television network, local stations, and cable channels FX and National Geographic from Walt Disney.
Reportedly, Allen was also one of the bidders for the BET Media Group, which is owned by Paramount and operates cable networks VH1 and BET. In 2022, Allen outbid Standard General in an attempt to swallow the television station Tegna for $5.4 billion. However, the deal did not materialize due to a lack of regulatory approvals.
Whether the Paramount deal will cross the finish line and if Allen can announce a mega-acquisition this time remains to be seen.
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