Word: paramountly
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...Paramount would have to borrow some $10 billion to acquire Time at the offering price, which Davis admitted at an analysts' meeting would mean no earnings for at least two years and would be a long-term drain on operations. At the very least, the debt would impose the kind of cost cutting that has characterized Laurence Tisch's management of CBS. At worst, it could force the sale of certain assets to meet the bankers' bills. Indeed, almost any of Time's defensive strategies would require heavy borrowing that would sap profits from whatever entity results when the dust...
While Time said it would give the Paramount bid a fair hearing, as the law requires, there was every indication that Time's top executives would fight to repel the intruder. In a three-page "Dear Mr. Davis" letter, Munro chastised the Paramount chairman for breaking his spoken agreement to leave Time alone: "On a personal level, I'm disappointed that I can't rely on you as a man of your word. Live and learn." Munro said the Paramount offer consisted of "smoke and mirrors," since it was subject to several conditions that included Paramount's ability to obtain...
...else failed, Time could seek a so-called white knight to save it from Paramount's grasp. But almost any bidder with enough financial backing could jump into the fray without being invited. Moreover, Wall Street analysts believe that all three companies are now up for sale, since their stock is falling into the hands of speculators who will gladly sell to the highest bidder. "I bet none of the three companies will exist a year from now," says Ellen Greenspan, a leading Wall Street arbitrager...
...some respects, a Time-Paramount combination would create a company similar, in structure if not in control, to the one envisioned in the Time- Warner deal. Time's magazine and book publishing operations, which include TIME, PEOPLE, SPORTS ILLUSTRATED and TIME-LIFE Books, might dovetail effectively with Paramount's book division. Time's cable television programming units, including Home Box Office and Cinemax, could mesh with Paramount's film-studio and television ventures. Time's cable-television systems would provide distribution vehicles for that product. Warner, meanwhile, has film, cable-TV and publishing units and differs from Paramount in owning...
...some important ways, however, the matchups look quite different. For one thing, the debt-free nature of the Time-Warner deal would have given the merged company far more flexibility than a Time-Paramount consolidation might have. "The Time-Warner combination left everybody's powder dry to be able to go out and make acquisitions," says Larry Gerbrandt, a vice president of Paul Kagan Associates, a California-based communications-industry analyst. "But in a tender offer like Paramount's, you have to load up with a tremendous amount of debt that limits your options. The strategy can work...