The move to make a whopping offer to Paramount Global may have created the Byron Allen effect.
“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,” the statement read, per The Hollywood Reporter. “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.”
In the aftermath of the news breaking out about Allen’s offer on Jan. 31, “investors rallied behind Paramount Global’s stock,” Variety reports. Shares of the entertainment conglomerate are said to have spiked by over 13% in early trading that day.
“The stock was trading in heavy volume at over $15/share — though still well under its 52-week high of $25.93,” the outlet explained.
Allen’s Paramount Global offer is far from his first business proposal. After Paramount announced in August 2023 it had changed its mind on a sale of BET Media Group, which had drawn initial interest from the media mogul and others, Byron came back in December with a new offer. He reportedly returned willing to pay $3.5 billion for BET after rumors of its potential sale to a management-led investor group, as previously shared by AFROTECH.
“You are pursuing an inside sale at a below-market price with management that will not yield the highest price for the stockholders,” Allen wrote in an email to Paramount Global’s management and board, per Bloomberg. “We believe it would be an egregious breach of fiduciary duty by the Paramount Global management team and board of directors if BET is sold for anything less than the highest price, particularly, in order to provide a sweetheart deal to an insider at the expense of public shareholders.”
Among fellow potential buyers are BET CEO Scott Mills and CC Capital Partners Founder Chinh Chu, according to the outlet.