Byron Allen, the media mogul known for his interest in acquiring media assets for billions of dollars, is facing backlash due to consistently late payments from broadcast stations owned by Allen Media Group. These payments, totaling tens of millions of dollars throughout the year, have been as much as 90 days past due to networks like ABC, CBS, and NBC, creating frustration and distance between Allen and his potential deal partners.
The behavior of consistently paying late is uncommon among local broadcasters, who pay hefty sums to larger network owners for carrying their brand and content, including live sports events like NFL games and postseason matches. The pattern of late payments has worsened over time, leading to increased dissatisfaction among network owners who have had to chase after their fees despite agreeing to payment plans at Allen’s request.
It remains unclear why Allen Media Group has been repeatedly late with payments, but the implications of this behavior are significant. After CNBC reached out to Allen Media Group for comment, a payment was made on the outstanding fees, although the amount was not immediately disclosed. The group’s financial challenges are also reflected in recent layoffs across various divisions of the company.
Industry Response
Representatives for ABC, CBS, and NBC declined to comment on the matter, highlighting the sensitive nature of financial transactions within the media industry. Allen’s late payments of tens of millions of dollars sharply contrast with his high-profile bids for media assets, which have not always come to fruition. Investment bankers and financial institutions have started losing faith in Allen as a serious buyer for large assets due to his track record of failed deals.
Future Ambitions
Despite setbacks, Allen remains vocal about his ambitions to expand his media holdings through acquisitions. His recent bids for Paramount Global, ABC, and other Disney networks, as well as the reported offer for Paramount’s BET Media Group, demonstrate his ongoing pursuit of growth opportunities. Allen’s media group has taken to reposting public reports of his interest in bidding on various media properties, showcasing his determination to succeed despite challenges.
Originally a comedian, Allen founded Entertainment Studios, now known as Allen Media Group, in 1993. The establishment of Allen Media Group Broadcasting in 2019 marked a new chapter in his media empire, which includes broadcast TV stations, small TV networks like Pets.tv and Comedy.tv, as well as the Black news and entertainment network, TheGrio. Recent acquisitions, such as the purchase of seven stations from Gray Television for $380 million, have contributed to the expansion of Allen’s broadcast station group.
Like other broadcast stations, Allen’s stations generate revenue through advertising and retransmission fees paid by pay TV operators. However, the shift from traditional TV to streaming platforms has posed challenges for broadcast station groups, impacting their revenue streams. Despite the industry challenges, Allen remains optimistic about the future of his media holdings and continues to pursue opportunities for growth in the market.
Byron Allen’s late payments to network owners have caused friction within the media industry, raising concerns about financial management and business practices within Allen Media Group. As the company navigates through layoffs and payment delays, its reputation as a potential buyer for media assets may be at risk, impacting future acquisition opportunities and partnerships within the industry. Allen’s persistence and determination will be crucial in overcoming these challenges and positioning his media empire for long-term success in a rapidly evolving media landscape.