Proactive Investors - Paramount Global (NASDAQ:PARA) stock jumped over 26% after media mogul Byron Allen made a near $30 billion takeover offer for the owner of CBS, Comedy Central, Nickelodeon and a Hollywood film studio.
Allen Media Group made an unsolicited offer on Wednesday to spend $14.3 billion on the shares and assume the company's $15 billion of debt.
The offering was made at a price of $28.58 apiece for the voting 'A' shares of Paramount, a premium of more than 50% to recent trading, and $21.53 for the nonvoting 'B' shares, according to Bloomberg, which first reported the story.
Paramount Global (NASDAQ:PARA) A shares rose almost 26% to $24.15 while the B shares climbed 8% to $14.79.
Allen Media Group told media: “Mr. Byron Allen did submit a bid on behalf of Allen Media Group and its strategic partners to purchase all of Paramount Global (NASDAQ:PARA)’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, who started his career as a stand-up comedian and gained recognition for his work on the pioneering "Real People" reality series in the 1980s, went on to found and run Entertainment Studios, a global media and entertainment company, now known as Allen Media Group.
The company owns television channels, digital platforms, and produces and distributes films, TV shows and online content, with its diverse assets including The Weather Channel, a syndicated TV content business and a number of local TV stations.
In March last year, Allen's company was among the potential bidders for BET Media Group, which includes the BET channel and VH1, from Paramount before it decided not to sell that business.