Paramount Board To Consider Allen Offer

Paramount has taken initial steps toward a possible sale of the entertainment giant – even as media mogul Byron Allen submitted $14 billion buyout bid.

The NY Post reports the company’s board has formed an independent committee outside of Shari Redstone — the media heiress who owns a controlling stake in Paramount — to consider strategic alternatives including a possible auction of the company, two sources close to the situation said.

The board’s move comes as comedian-turned-investor Allen, who also owns the Weather Channel, said he made a $14.3 billion offer to buy all of the outstanding shares of Paramount Global. The firm also offered to assume Paramount’s $15.6 billion in debt.

Shares of Paramount Global — which in addition to its namesake movie studio owns CBS and cable networks including MTV, BET, Nickelodeon and Comedy Central — rose more than 6% Wednesday.

Nevertheless, some were skeptical whether Allen’s bid will result in a deal.

“I like the fact Byron is offering all Paramount shareholders a premium,” legendary investor Mario Gabelli told The Post on Wednesday. “But show me the money. You don’t know where Byron is getting the money from.”

Gabelli, who owns a stake in National Amusements — the holding company that controls Paramount with an 80% voting stake — added that he couldn’t confirm specifically whether Paramount had formed an independent committee to explore strategic alternatives.

If Allen manages to buy the company, he plans to sell the Paramount film studio, real estate and other intellectual property while keeping the TV properties, including its Paramount+ streaming service, and run them on a more cost-efficient basis, according to a source briefed on Allen’s plans.