Byron Allen has entered the fray for Paramount Global, submitting a bid valued at $30 billion to buy out the company’s outstanding stock and existing debt.
The offer, first reported by Bloomberg News, comes from Allen Media Group and unnamed “strategic partners,” according to a statement from Allen Media Group.
“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. 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,” Allen Media Group said.
A representative for Paramount Global declined to comment.
Allen Media Group will undoubtedly face an uphill climb in its pursuit of the storied studio. The company has been at the center of M&A speculation for months. David Ellison’s Skydance Media for several months has been circling a deal to take control of Paramount Global by acquiring the preferred voting shares owned by controlling shareholder Shari Redstone through holding company National Amusements Inc. Warner Bros. Discovery has also had at least one informal discussion with Paramount leadership about the possibility of a combination although those rumors have cooled in recent weeks.
As of Tuesday, Paramount Global’s market cap stood at $9.13 billlion and the company’s debt load is just over $15 billion. Paramount, like other traditional media giants, has struggled with the rise of streaming and the slow but steady decline of linear broadcast and cable assets that have long been the biggest source of profits for legacy Hollywood studios.