Byron Allen, founder, chairman and CEO of Entertainment Studios and Allen Media Group, speaks at the Milken Institute Global Conference on May 2, 2022 in Beverly Hills, California.
Patrick T. Fallon AFP | Getty Images
Media mogul Byron Allen has expressed public interest in buying various media properties for billions of dollars, and the radio stations he owns have been slow to pay network owners, angering media allies and raising concerns over the Put some distance between Len and his potential trade.
Allen Media Group-owned stations are 90 days overdue on payments to networks including ABC, CBS and NBC, according to people familiar with the matter. People familiar with the matter said payments totaled tens of millions of dollars throughout the year, with delays getting worse over time.
Allen Media Group owns radio stations in more than 20 markets with ABC, CBS and NBC affiliates, according to its website.
ABC, CBS and NBC became increasingly frustrated after a seemingly endless pursuit of fees, even at Allen’s request, people familiar with the matter said A payment plan was agreed upon. People familiar with the matter said the continued late payment is unusual among local broadcasters, which pay larger network owners large sums to spread brands and some content, especially for live sports like the NFL and many seasons across the league. Postgame.
It’s unclear why Allen Media Group repeatedly missed payments.
The group paid the unpaid fees after CNBC contacted Allen Media for comment this week, people familiar with the matter said. The amount of the payment could not immediately be determined.
Networks typically bill local affiliates every one to three months, depending on the contract. Much of the money for the payments comes from so-called retransmission fees that cable operators pay to stations, which could create a situation where money goes out first and comes in later. debate That structure should change as cord-cutting accelerates and networks move more content to streaming platforms.
Various divisions of Allen & Co., including stations lie in Markets spanning the Midwest, Southeast, West Coast and Hawaii, It is said It has experienced layoffs in recent months. Another round of layoffs is expected to take place by the end of August, a person familiar with the matter said.
A representative for Allen Media Group declined to elaborate on the matter, but said in a statement: “Mr. Allen founded Allen Media Group 31 years ago over the dining room table. Allen Media Group is now the largest and fastest growing one of the private companies.
“Like most media companies and private equity firms, we evaluate many acquisition opportunities. Over the past few years, with continued support from the capital markets, the company has successfully completed more than $1 billion in acquisitions. Allen Media Group Still going strong, we continue to manage our partnerships carefully, as we have done throughout our 31-year history.
Representatives for ABC, CBS and NBC declined to comment.
alan’s business
Allen’s overdue payments of tens of millions of dollars stand in stark contrast to his frequent multibillion-dollar bids for media properties. In recent years, deals he pursued failed to pan out, causing investment bankers and financial institutions to lose confidence in Allen as a serious buyer of large assets, according to three investment bankers and a person familiar with the matter.
Allen’s recent M&A interests include $30 billion acquisition of Paramount Worldwide Earlier this year, ABC and other Disney Networks spent $10 billion to acquire last yearas well as reported $3.5 billion quote The production from Paramount’s BET Media Group, he resubmitted after the process concluded in December.
There have been a recent report Allen is considering another acquisition of Paramount The “shop visit” period with buyer Skydance ends Later this month.
Allen has been outspoken about his ambition to grow his media assets and defended his record of failed bids. told CNBC In January, the latest takeover attempt failed as some owners ultimately decided not to sell.
“There are quite a few banks supporting us and standing with us, and even private equity firms,” ​​Allen told CNBC in September about potential deals for ABC and other Disney assets. “I think other assets will start to become available, I think we’ll get them eventually.”
Allen Media Group has begun reposting public media reports on its own website indicating its interest in bidding for media properties – even reports of unconfirmed interest, e.g. Reported offer of $8.5 billion For Tegna.
Allen, a former comedian, founded Entertainment Studios in 1993, now known as Allen Media Group. formedSince then, Allen has been building his broadcast media empire through a series of smaller deals.
In addition to The Weather Channel and broadcast stations, Allen Media owns a number of smaller television networks such as Pets.tv and Comedy.tv, as well as the black news and entertainment network TheGrio.
Most recently, in April, Allen Media salaried $380 million gray tv As part of the divestiture required for Gray’s acquisition of Quincy Media, the operations of the seven stations will be retained.
Like most other stations, Allen’s station generates revenue through advertising revenue and so-called retransmission fees, which stations receive from pay-TV operators. However, as millions of people switch from traditional TV to streaming, the broadcast group has also suffered.
Record growth in political advertising expected ahead of presidential election as some of the biggest radio station owners like Nexstar Media Group and sinclair Recorded in the most recent earnings release.
Revealed: Comcast-owned NBCUniversal is the parent company of CNBC and broadcast network NBC.
