Byron Allen, founder, chairman and CEO of Allen Media Group, speaks at the Milken Institute Global Conference on May 2, 2022 in Beverly Hills, California.
Patrick T. Fallon | AFP | Getty Images
Byron Allen, $14 billion media mogul paramount globaltold CNBC on Wednesday that he has the money to fund the deal, despite skepticism that it will go through.
“We have more than enough capital available. The real challenge is making sure we can get the deal done,” Allen said.
“Whether this deal lives or dies, [Federal Communications Commission],” he added.
Mr. Allen, founder and CEO of a media group that owns dozens of television networks across the United States, offered $30 billion for all of Paramount’s outstanding stock, including debt and equity.
Allen Media Group said in a statement that the offer “is the best solution for all Paramount Global shareholders and the bid should be taken seriously and moved forward.”
Allen has a long history of making offers to major media properties. However, bidding does not mean buying.
His recent media acquisition offer did not result in a sale. The Wall Street Journal reported On Wednesday, Mr. Allen offered Paramount $18.5 billion last year but was rejected.
Allen told CNBC he has not yet received a response from Paramount to his latest offer.
Shari Redstone, who runs Paramount through her company National Amusements, is here to discuss a possible merger or sale of Paramount, whose brands include CBS, Showtime, Nickelodeon and the movie studio that bears its name. It was open to trading for several months.
CNBC reported last week that David Ellison’s Skydance Media and its backers are exploring a deal to take Paramount Pictures or the entire media company private.
CNBC reported in December that Paramount had entered preliminary talks with Paramount. warner bros discovery Two media giants are set to merge in a partnership that could face regulatory hurdles.
Mr. Allen’s bid for Paramount is the most ambitious deal the media mogul has attempted to accomplish. Here are some of his recent trading attempts.
- In December, Mr. Allen renewed his bid to buy Paramount-owned Black Entertainment Television and VH1 for a combined $3.5 billion.
- In November, Bloomberg reported that he was considering buying a TV station. E.W. Scripps.
- In September, Mr. Allen made an offer to buy ABC and several other networks. disney It was sold for $10 billion after Disney CEO Bob Iger opened the door to selling the company’s linear television assets.
- The company was considering purchasing the National Football League’s Washington Commanders in 2022.
- In March 2020, he offered $8.5 billion to buy out TV station owners Tegna.
Allen told CNBC by phone Wednesday that he missed out on some deals because ownership changed its mind about wanting to sell. He highlighted his acquisition of the Weather Channel in 2018 for a reported $300 million and widely defended his own accomplishments, citing Baseball Hall of Famer Babe Ruth.
“Let’s talk about Babe Ruth. He goes down as one of the greatest baseball players of all time? And he struck out in half of his at-bats,” Allen said. In fact, Ruth has 1,300 strikeouts in 8,399 at-bats, a strikeout rate of 15%.
Allen’s bid for linear TV assets comes as the media landscape shifts from traditional TV to streaming.Almost every major media company is launching a service to compete with the streaming giants. Netflix.
Paramount reported in its third quarter earnings report that the number of subscribers to its streaming platform Paramount+ has increased to 63 million. But Paramount’s direct-to-consumer products haven’t been as profitable as Netflix’s. The division reported an adjusted loss of $238 million in the third quarter.
Paramount will announce its fourth quarter financial results on February 28th.
Allen told CNBC he wants to buy Paramount for a linear network, which he says is the most difficult part of the company.
“These are still great businesses if you know how to manage them properly,” Allen says.
Paramount’s stock rose nearly 7% Wednesday and has risen more than 35% in the past three months as talk of a takeover increases. However, the stock is down more than 40% from its 52-week high of $25.93 per share in February 2023.
— CNBC’s Alex Sherman and Julia Boorstin contributed to this report.
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