Logo

Paxson Shares Surge on Speculation of Allen Offer

Apr 6, 2005  •  Post A Comment

Shares of Paxson Communications surged Wednesday as Wall Street reacted to the possibility of syndicated television show impresario Byron Allen buying the beleaguered company for around $2.2 billion.

The story of Mr. Allen’s possible purchase was first reported in Monday’s edition of TelevisionWeek. Shares in Paxson jumped as much as 88 percent Wednesday to $1.16 at midday as investors bought shares in hopes that Mr. Allen’s dream of buying the company and launching a black-oriented network would come to fruition.

Mr. Allen told TelevisionWeek last week that he was holding talks with Credit Suisse First Boston and a series of private-equity firms about putting together a bid that would total around $2.2 billion.

The possibility of a buyer for Paxson is being hailed as welcome news for Paxson investors, who have seen the value of their investment dwindle as Paxson has struggled to cope with nearly $1 billion in debt and as the company has tried unsuccessfully to develop a winning programming strategy for its 60 stations.