Bryon Allen Makes $14 Billion Offer: Paramount Global Stock Trades Higher

Paramount Global PARA shares are trading higher Wednesday following reports suggesting Byron Allen made a $14.3 billion offer to acquire Paramount Global.

The Details:

According to a report from Bloomberg, Allen Media Group has made a $14.3 billion offer to buy Paramount Global, offering $28.58 for each voting share of the company and $21.53 for each nonvoting share. With debt, the offer is around $30 billion.

"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," Allen Media Group said in a statement.

Paramount has also received interest from Skydance Media and Warner Bros Discovery in recent months. Skydance Media CEO David Ellison discussed an all-cash bid for Paramount’s parent-company National Amusements, and Warner Bros. Discovery, Inc. WBD CEO David Zaslav and met with Paramount CEO Bob Bakish to discuss a possible merger in December.

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PARA Stock Prediction 2024

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Paramount Global, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Paramount Global, the 200-day moving average sits at $14.95, according to Benzinga Pro, which is below the current price of $15.46. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

PARA Price Action: According to Benzinga Pro, Paramount Global shares are up 8.78% at $14.88 at the time of publication.

Image: Emilien from Pixabay