One of the wealthiest black men in entertainment, Byron Allen, has formally presented a $30 billion acquisition bid for Paramount, the renowned film and TV giant that encompasses the CBS broadcast network and channels like Nickelodeon.
The proposal, with a 50% premium to recent trading, puts the initial bid at $14 billion inclusive of an estimated $15 billion of the company’s existing debt resulting in a comprehensive deal totalling approximately $30 billion.
Through this, Allen joins a growing list of interested parties eyeing Paramount, currently under the control of Shari Redstone and her family-Bloomberg stated in an earlier report.
- Laying bare his financing strategy in a letter Allen said, “We are highly confident that if we have full access to the company’s internal due diligence information, we will be able to structure the capital structure to best provide for the company’s future growth prospects.
- “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,” Allen’s company said in a statement.
The Allen Media Group, Allen’s conglomerate, owns 22 TV stations and the Weather Channel, amassed through deals exceeding $1 billion.
The proposed deal entails Allen’s intention to divest the Paramount film studio, real estate, and select intellectual property while retaining control of the TV channels, including the Paramount+ streaming service. This strategic move aims to streamline operations for increased cost efficiency.
Backstory
Allen, the affluent entrepreneur, made an initial bid for Paramount last April, only to face rejection from the board, optimistic about securing a higher valuation.
Consequently, Paramount’s stocks experienced a notable 37% decline since that juncture.
Beyond acquisitions, Allen’s impact transcends through legal battles against racial discrimination, and filing lawsuits against AT&T, Comcast, and Charter Communications.
Settlements in 2015, 2020, and 2021 marked victories in the fight against discrimination.
In 2021, he challenged McDonald’s, alleging the fast-food giant’s refusal to advertise with Black-owned media, a case persisting after McDonald’s unsuccessful attempt to dismiss the lawsuit.
Allen’s journey epitomizes not just business acumen but also a fervent commitment to dismantling barriers in the industry.
Embarking on his career in comedy at a young age, Allen left an indelible mark with a groundbreaking appearance on “The Tonight Show” at 18.
His diverse trajectory included hosting NBC’s “Real People,” starring in the 1988 TV film “Case Closed,” and presiding over “The Byron Allen Show” from 1989 to 1992.
In 1993, he established the Allen Media Group, formerly CF Entertainment, specializing in cost-effective TV programming.
The group’s growth was accentuated by strategic acquisitions like Freestyle Releasing in 2015 and TheGrio in 2016. Notably, the acquisition of the Weather Channel from Comcast for $300 million in 2018 highlighted the group’s expansion.
