Byron Allen Sells Allen Media Group’s TV Stations To Reduce Debt
Byron Allen is selling local television stations owned by his Allen Media Group (AMG), and Moelis & Co. is managing the deal. Allen Media Group announced the news on May 2, according to The Los Angeles Times.
The company needs to pay down debt, Allen said in a statement. Over the past six years, the company has invested over $1 billion in acquiring stations with the hopes of becoming the largest independent television operator in the United States. Its portfolio includes 28 stations affiliated with ABC, NBC, CBS, and Fox, operating in 21 US markets.
Why is Bryon Allen selling local 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,” Allen, chairman and chief executive, said in a statement. “We are going to use this opportunity to take a serious look at the offers, and the sale proceeds will be used to significantly reduce our debt.”
AMG has struggled as the television industry has evolved, with more consumers opting for streaming services like Netflix, Amazon, and Disney+.
AMG reverses its layoff plans
In January, AMG announced that it would end weather forecasting operations across its local television stations, following widespread outrage from viewers.
Originally, AMG planned to replace its weather forecasting operations with streamlined operations to reduce costs. The cuts could have led to the termination of nearly 100 local forecasters across 36 outlets. However, after announcing the move, it faced severe backlash from the people served by AMG stations.
“While not all staff and meteorologists are safe, a majority will remain in their roles. Earlier today, employees were informed of their termination dates, but this afternoon they were told, ‘Allen will no longer hub the weather from Atlanta and your job is still there,’” wrote Emily Pike of WMTW on Facebook.
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