by Sharelle B. McNair
June 3, 2025
Allen media Group enlisted the assistance of Moelis & Co. to help within the sale after spending over $1 billion to seize shops in smaller markets.
Allen Media Group founder Byron Allen is making strikes to promote a number of owned tv stations and has employed a high-quality funding agency to take the lead, The Los Angeles Instances reported.
Allen, the corporate’s chairman and CEO, enlisted the assistance of Moelis & Co. to help within the sale of his network-affiliate tv stations after spending over $1 billion to seize shops in smaller markets. In an announcement made June 2, Allen mentioned the transfer is as a result of firm’s want to pay down debt. “Now we have acquired quite a few inquiries and written gives for many of our tv stations, and now’s the time to discover getting a return on this phenomenal funding,” Allen mentioned.
“We’re going to use this chance to take a critical take a look at the gives, and the sale proceeds shall be used to considerably cut back our debt.”
With almost two dozen stations underneath its belt, together with some in Northern California; Honolulu; Flint, Michigan; Madison, Wisconsin; and Tupelo, Mississippi, the media group has spent years — and important funds — on station purchases to grow to be the most important impartial tv operator within the nation. A number of of Allen’s stations have confirmed their value by that includes programming from one of many 4 main broadcasting networks: ABC, CBS, NBC, and Fox.
Nevertheless, there was some downfall of their endeavors.
In 2024, the corporate applied a number of layoffs as a part of its company-wide development technique. As layoffs occurred on the Climate Channel, Leisure Studios, and its HBCU Go Sequence, that wasn’t the primary time. Earlier than that, Allen Media Group downsized to “be extra environment friendly.”
Based on CNBC, the media firm has struggled financially for some time. It was reported that Allen Media Group had been late with their funds, value tens of tens of millions of {dollars}, to community homeowners, previous the web 90-day due date. The explanations for the late funds had been unclear.
In early 2025, the corporate refinanced a $100 million debt facility. S&P International Rankings introduced that the corporate should preserve a excessive degree of liquidity over the following 12 months, but additionally famous that the corporate continues to carry a junk score, with the chance of future debt.
Monetary struggles can be attributed to the advertising challenges that tv stations have skilled through the years. As media patrons shift their budgets to digital platforms to cater to youthful audiences, the marketplace for tv promoting is strained by competing with streaming companies equivalent to Netflix, Hulu, and Amazon Prime Video.
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