Byron Allen makes a $14 billion offer for all of Paramount Global

(Bloomberg) — Media mogul Byron Allen has made a $14.3 billion offer to buy all of Paramount Global’s outstanding shares, according to people familiar with his terms.

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Allen offered $28.58 each for Paramount’s voting shares, a 50% premium over recent trading, and $21.53 for the non-voting shares, according to the people, who asked not to be identified discussing terms that were not public. Including existing debt, the total value of the deal rises to approximately $30 billion.

His company, Allen Media Group, confirmed he had made an offer in a statement to Bloomberg News. Paramount representatives declined to comment.

“This $30 billion offer, which includes debt and equity, is the best solution for all Paramount Global shareholders and should be taken seriously and pursued,” Allen’s company said in the statement.

Read more: Paramount CEO asks staff to stay focused amid deal speculation

Paramount – one of the crown jewels in a global media empire controlled by the Redstone family – would be a difficult deal to pull off. The company generated operating income before depreciation and amortization of $1.87 billion in the first nine months of last year, down 30% from the year before. Turnover remained stable at $22 billion. Allen would be borrowing at a time of much higher interest rates than some of his previous acquisitions.

Allen’s plan, according to the people, is to sell the Paramount film studio, real estate and other intellectual property. He will retain the TV channels, including the Paramount+ streaming service, and operate them on a more cost-efficient basis. He has banks and other investors lined up, the people said.

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