Byron Allen’s Media Group Sells 10 TV Stations To Atlanta-Based Media Group In A $171M Deal
Atlanta-based Gray Media, Inc., will acquire 10 television stations from Byron Allen’s media group for $171 million. The transaction would bring Gray into three new markets – Columbus-Tupelo, Mississippi; Terre Haute, Indiana; and West Lafayette, Indiana, according to a press release.
It will also build the company’s presence in seven other markets, creating duopolies that will enable Gray to enhance its public service to their communities with expanded local news, local weather, and local sports programming.
Allen Media Group in debt
In June, Byron Allen announced that it was selling local television stations owned by his Allen Media Group (AMG), and Moelis & Co. is managing the deal. Allen said in a statement that it needed to pay its debt.
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.
“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.
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.
Image: Chris Carlson / Associated Press
