Media magnate Byron Allen has shown interest in acquiring Paramount Global (NASDAQ:PARA) (NASDAQ:PARAA), intending to privatize it before eventually launching an IPO, as revealed on CNBC's "Last Call."
What Happened: During a discussion with Brian Sullivan on CNBC on Thursday, Allen talked about the potential merger of Paramount with SkyDance and how it affects his plans to purchase Paramount.
"We are interested in the entire package. We want to buy all the shares, take it private and move on from there. We think the company should be private for now as it repositions itself and then come out later and do an IPO," Allen stated.
Allen also expressed his readiness to work with SkyDance and Redbird, saying, "We are open to working with SkyDance and Redbird...We are big believers of linear network."
Upon acquisition, Allen aims to "rightsize" Paramount, hinting at potential "cost-cutting" measures. He also acknowledged the current transitional phase of the media landscape, foreseeing a time when various media platforms would "work together in symphony."
Why It Matters: This news follows a series of significant events for Paramount. In January, Allen made a $14.3 billion offer to acquire Paramount, causing the company's shares to trade higher. In April, Paramount announced the departure of CEO Bob Bakish amid ongoing merger talks with Skydance Media.
More recently, Sony Group Corp and Apollo Global Management Inc made a joint $26 billion bid to purchase Paramount, raising concerns about Sony's financial capacity to handle the acquisition.
Price Action: On Tuesday, Paramount Global – Class B Common Stock closed at $12.89 while its Class A Common Stock PARAA closed at $23.21, according to Benzinga Pro. The company's first-quarter earnings surpassed estimates, with an EPS of $0.620 against an estimate of $0.360, despite missing revenue estimates.
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