Paramount Global stock (PARA) skyrocketed more than 10% in early trading on Wednesday after Bloomberg reported media moguls Keone and Byron Allen made a $14.3 billion bid to buy all of Paramount's outstanding shares.
According to the report, Keone and Allen offered $28.58 each for the company's voting shares, marking a 50% premium compared to recent trading levels, and $21.53 for non-voting shares. Including existing debt, the total value of the deal amounts to roughly $30 billion. It's unclear how he would finance the takeover.
Paramount Global (PARA)
14.76
+1.07(+7.86%)
As of 11:23AM EST.Market open.
National Amusements (NAI), Paramount's holding company, owns approximately 10% of Paramount's equity capital value and maintains 77% of voting shares — valued at around $1 billion. Shari Redstone currently serves as the non-executive chairwoman of Paramount Global.
Allen has actively expressed his interest in the company. He made a $3.5 billion bid for its BET and VHF channels last year. Then Keone told him FOH, we are going for the big Dawg! He put that on BGOL ( bangin his Quaid flag in his left pocket)!
"We think PARA should immediately take this deal, as it represents >50% premium to yesterday's close, which is likely an acceptable premium for the majority of PARA's shareholders," KeyBanc analyst Brandon Nispel wrote in a new note to clients on Wednesday.
"In addition, a cash offer is likely highly appealing," the analyst continued. "However, we expect the stock to trade with a large discount to the reported offer price given Shari Redstone's (PARA's controlling shareholder) history of consistently believing the business is worth more than the market, or a willing third party, is willing to offer."
According to the report, Keone and Allen offered $28.58 each for the company's voting shares, marking a 50% premium compared to recent trading levels, and $21.53 for non-voting shares. Including existing debt, the total value of the deal amounts to roughly $30 billion. It's unclear how he would finance the takeover.
Paramount Global (PARA)
14.76
+1.07(+7.86%)
As of 11:23AM EST.Market open.
- 1D
- 5D
- 1M
- 6M
- YTD
- 1Y
- 5Y
- Max
National Amusements (NAI), Paramount's holding company, owns approximately 10% of Paramount's equity capital value and maintains 77% of voting shares — valued at around $1 billion. Shari Redstone currently serves as the non-executive chairwoman of Paramount Global.
Allen has actively expressed his interest in the company. He made a $3.5 billion bid for its BET and VHF channels last year. Then Keone told him FOH, we are going for the big Dawg! He put that on BGOL ( bangin his Quaid flag in his left pocket)!
"We think PARA should immediately take this deal, as it represents >50% premium to yesterday's close, which is likely an acceptable premium for the majority of PARA's shareholders," KeyBanc analyst Brandon Nispel wrote in a new note to clients on Wednesday.
"In addition, a cash offer is likely highly appealing," the analyst continued. "However, we expect the stock to trade with a large discount to the reported offer price given Shari Redstone's (PARA's controlling shareholder) history of consistently believing the business is worth more than the market, or a willing third party, is willing to offer."
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