Byron Allen Looking To Make MTV, Nickelodeon And Comedy Central "Cost Efficient", How Does This Impact Paramount Global's Linear Channels?

Last year, Warner Bros. Discovery and Paramount Global were reportedly in talks for a potential merger. Fast forward to the present, Shari Redstone is looking to sell her shares at Amusement Park with Skydance that has collaborated with the company on various films making their bid with Byron Allen topping them.

As reported sometime ago, Allen Media Group made a proposal to acquire Paramount Global for $30 billion (R562 billion) part of which helps them cover up pending debts. Should this deal move forward, they would keep TV channels and the Paramount+ streaming service intact while selling off film studios and other intellectual properties.

The impact on TV channels in the United States

Byron Allen, the founder of Allen Media Group is looking to make these brands cost effective. Selling off "film studios and other intellectual properties" is another way to minimise expenses. It's not really known whether Allen will look to retaining various content from Nickelodeon and MTV.

Similar to CW, it's likely that we'll be seeing Nickelodeon and MTV relying more on third party content and possibly distributing even lesser originals. As mentioned, he was looking to run them on a more "cost-efficient basis". Nickelodeon has garnered popularity for shows like SpongeBob SquarePants and The Loud House, MTV on the other features shows like Teen Mom and Ridiculousness.

The impact on TV channels on a wider spectrum

With Nickelodeon and MTV getting less content, Paramount will likely look into closing channels across the country. This was likely implied when they mentioned selling off "film studios and other intellectual properties" I mean the company in question doesn't have much international presence.

There's always chances that they could retain a portion of channels such as Comedy Central and BET while secondary networks like Nicktoons and MTV Base cease to exist as they won't be much content to supplement the existing line-up of channels.

But then again Sony once offered linear services across the country before closing down most feeds while a few such as the UK were put under different management. Disney had been reducing the carbon footprint for Disney Channel while it continues to operate in the United States.

The future of SpongeBob SquarePants and Ridiculousness

As mentioned, Allen is looking to sell their film studios and it's possible that they could retain the more relevant brands such as Nickelodeon Animation Studios and sell majority of Paramount Pictures. There's been various companies that had their eye on their studios such as Netflix, Skydance, Warner Bros. Discovery and Disney perhaps one of them could look into acquiring.

As for the content in general, Paramount's remaining offering could be licenced to various local broadcasters I mean should these channels not have much of a presence globally.

Byron Allen Makes $30 Billion Offer For All of Paramount Global

Byron Allen, who made headlines last year with his unsolicited bid to buy key assets from Walt Disney, is at it again with a $30 billion offer to acquire Paramount Global, Allen Media Group confirmed to sources.

Allen, whose Allen Media Group owns The Weather Channel, LocalNow, and more than two dozen local affiliate channels, is offering $28.58 for each voting share of Paramount, more than a 50% of its Tuesday closing price of $13.68, according to Bloomberg, which first reported on the news. The deal also includes an offer of $21.53 for non-voting shares. The offer to buy the outstanding shares equates to $14.3 billion, it said.

Despite its size and breadth of assets, Allen Media Group had largely operated quietly, ironic given Allen’s roots in comedy and show business. But the spotlight shone on the company after Allen made a $10 billion unsolicited bid for the ABC network, affiliates and cable channels like FX last summer, an offer Disney ultimately turned down.

Allen also pursued BET when Paramount shopped the cable network around last year, although that deal also fell short, despite some chatter in December. Now, Allen Media Group is back to buy the entire company.

“Mr. Byron Allen did submit a bid on behalf of Allen Media Group and its strategic partners to purchase all of Paramount Global’s outstanding shares,” a spokesman for Allen Media Group told sources. “We believe this $30 billion offer, which includes debt and equity, is the best solution for all of the Paramount Global shareholders, and the bid should be taken seriously and pursued.”

A spokesman for Paramount declined to comment.

The offer comes amid increased chatter of Paramount looking to make a deal, with Warner Bros. Discovery CEO David Zaslav and Paramount CEO Bob Bakish in talks about a potential merger. While that the prospects of a transaction there has fizzled, Skydance Media CEO David Ellison, whose studio was behind Paramount films like Top Gun: Maverick and Transformers: Rise of the Beasts, has also made a preliminary bid to buy National Amusements, the company run by Shari Redstone that owns a controlling stake in the media company.

Allen doesn’t want to keep the entire company. He intends to sell the Paramount film studio, one of the most storied in the entertainment business, the real estate and its intellectual property. He will keep the TV channels like Comedy Central and Nickelodeon, as well as its Paramount+ streaming service, according to Bloomberg.

The report also said he sent his offer via text message to senior management and the board members.

This isn’t the first time Allen has made an offer for a major media asset. Beyond his bids for BET and the Disney assets, he also tried to buy TV station owner Tegna and even an NFL football team.