*Byron Allen, the media mogul behind Allen Media Group (AMG), has initiated a major strategic shift by listing his 28 local television stations for sale, a move aimed at alleviating the company’s financial strain.
According to THR, AMG has tapped investment bank Moelis & Company to oversee the sale of these stations, which are affiliated with major networks like ABC, NBC, CBS, and Fox and span 21 U.S. markets, including Honolulu, Madison, Montgomery, Flint, and Tucson. The proceeds, according to AMG, will “significantly reduce” its debt, a pressing concern amid a challenging media environment.
Reflecting on the decision, Allen stated, “Six years ago, Allen Media Group began the process of investing over one billion dollars to acquire big four network-affiliated television stations. We have received numerous inquiries and written offers for most of our television stations and now is the time to explore getting a return on this phenomenal investment.” He emphasized the company’s intent to “take a serious look at the offers” to address its financial obligations.
The sale comes after a turbulent period for AMG, which refinanced a $100 million credit facility in February to gain operational flexibility. Like many linear TV companies, AMG faces pressures from cord-cutting, which impacts retransmission fees, and a competitive ad market increasingly dominated by automated buying from tech and entertainment giants. Over the past year, the company has implemented cost-cutting measures to navigate these industry shifts.
Allen, a former comedian, has built AMG into a diverse media player, acquiring assets like The Weather Channel, The Grio, and a portfolio of syndicated shows.
Despite bold moves, such as a $14 billion bid for Paramount Global in 2024, Allen Media Group continues to face the broader challenges of navigating the digital transition, even with streaming initiatives like HBCU Go and the Weather Channel’s FAST channels.
In a 2020 profile by The Hollywood Reporter, Allen expressed his ambition to one day own CNN, drawing a parallel to media mogul Rupert Murdoch: “I’m close to the same age when Rupert Murdoch came here to America,” he said. “He was in his 50s. I’m 59. What you see today will be 10,000 times bigger.”
MORE NEWS ON EURWEB.COM: Local TV Meteorologists Deliver Tearful Farewell As Stations Replace Staff with Byron Allen’s Weather Channel Feed | WATCH
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