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Trang chủ » Media giant’s key shareholder sees spike in shares following BDT Capital’s investment wager on Paramount.

Media giant’s key shareholder sees spike in shares following BDT Capital’s investment wager on Paramount.

Paramount shares pop after BDT Capital bets on the media giant's key shareholder

Paramount shares pop after BDT Capital bets on the media giant’s key shareholder

Paramount Global saw a nearly 6% jump in its shares on Friday after National Amusements, the company’s majority voting shareholder, announced it had entered into an agreement for a $125 million preferred equity investment from BDT Capital Partners. BDT is the affiliate of BDT & MSD Partners, which has Byron Trott as its chairman and co-CEO. Trott is known as Warren Buffett’s preferred and trusted banker, and it was he who suggested Buffett throw a $5 billion lifeline to Goldman Sachs during the 2008 financial crisis. Buffett’s Berkshire Hathaway is actually Paramount’s biggest institutional investor, with a 15.4% stake, according to FactSet.

The news was an upgrade for Paramount, which has seen its shares slide more than 30% since the start of the second quarter, after its quarterly earnings and revenue missed analyst estimates, and the CBS parent slashed its quarterly dividend. However, Buffett, 92, struck a negative tone about the big dividend cut, while signaling his pessimistic outlook for the streaming business at Berkshire’s annual shareholder meeting in early May.

Loop Capital upgraded Paramount to a hold rating from a sell in light of the BDT investment and said the bull case is that the financial pressure will force Paramount to find a buyer and shareholders will achieve private market value.

FAQs:

What is National Amusements?
National Amusements is the majority voting shareholder of Paramount Global.

What is BDT Capital Partners?
BDT Capital Partners is an affiliate of BDT & MSD Partners and has made a $125 million preferred equity investment in National Amusements.

Who is Byron Trott?
Byron Trott is the chairman and co-CEO of BDT & MSD Partners, known as Warren Buffett’s preferred and trusted banker.

What is Buffett’s connection to Paramount Global?
Buffett’s Berkshire Hathaway is the biggest institutional investor in Paramount Global, with a 15.4% stake, according to FactSet.

Paramount shares pop after BDT Capital bets on the media giant's key shareholder
Paramount shares pop after BDT Capital bets on the media giant’s key shareholder

Media giant’s key shareholder receives a boost as BDT Capital places its bet, causing increase in Paramount shares.

Paramount Global’s shares have surged by almost 6% after an announcement that National Amusements, the majority voting shareholder of the media company, has entered into an agreement for a $125m preferred equity investment from BDT Capital Partners. BDT & MSD Partners’ chairman and co-CEO is Byron Trott, who has previously been named as Warren Buffett’s preferred and trusted banker. Berkshire Hathaway, the investment company led by Buffett, is actually Paramount’s largest institutional investor with a stake of 15.4%. Loop Capital has since upgraded Paramount to a ‘hold’ rating from a ‘sell’.

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