Paramount Global (NASDAQ: PARA) shares jumped nearly 7% on Wednesday after media mogul Byron Allen proposed a $30 billion acquisition of the company’s outstanding stock and debt.
Bloomberg reports that the agreement stipulates Allen’s payment of $28.58 for each voting share and $21.53 per non-voting share. This arrangement culminates in a total valuation of $14.3 billion for the outstanding shares.
The remaining amount from the $30 billion proposal is allocated to settle existing debts. This proposition by Allen Media Group follows a little over a month after Allen reaffirmed an offer of $3.5 billion to acquire BET Media Group.
Paramount Attracts Multiple Suitors
Allen is not the sole party expressing interest in Paramount (NASDAQ: PARA). A meeting occurred last month between Bob Bakish, the Chief Executive Officer of Paramount Global, and David Zaslav, the CEO of Warner Bros. Discovery (WBD), to explore the possibility of a merger.
Reports at the time indicated that both corporations had engaged financial advisors, though discussions were at an early stage. At the same time, Paramount was in talks with Skydance Media, which aimed to privatize the company. David Ellison, Skydance’s CEO, had spent several months attempting to secure the preferred voting shares of controlling shareholder Shari Redstone, held by the Redstone family’s holding company, National Amusements.
Divergent Views Among Industry Analysts
Analysts from Moffett Nathanson expressed doubts about Allen’s proposed business strategy for the company. This plan involved divesting Paramount Pictures, the company’s film studio, and its real estate assets to focus on enhancing its linear television services and streaming platform.
The analyst also highlighted that while other parties are interested in acquiring Paramount for its film studio and divesting its diminishing linear assets, Allen’s contrary approach increases the likelihood of a successful sale of Paramount Pictures.
Paramount (NASDAQ: PARA) Stock Performance
PARA stock soared 6.65% on Wednesday. The traders had exchanged hands with 70,779,849 (70.77 million) shares compared to the average daily trading volume of 16.30 million.