Paramount’s stock price jumped 10% on Wednesday morning to about $15, stopping 30% short of Allen’s $21.53 entreaty for the non-voting shares. The valuation suggests investors are skeptical, but want the entertainment conglomerate led by Bob Bakish to get serious about finding a new owner. Other suitors include Skydance Media and Warner Bros Discovery (WBD.O). Any transaction will be complicated by Shari Redstone and her family, who control 77% of the vote through their theater chain National Amusements. Her company could be up for grabs as well.
It will be hard to take Allen’s approach too seriously for now. It would be a big bite for him, requiring multiple partners and significant funding commitments. He was unable to pry even the Black-focused BET cable network from Paramount last year, and was unsuccessful in earlier efforts to acquire TV group Tegna (TGNA.N) and other assets. Allen Media may ultimately just want some of Paramount’s pieces. Either way, his presence should be helpful to the takeover target’s cause.(By Jennifer Saba)
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