Broadcast stations owned by Byron Allen’s Allen Media Group have been consistently late in making payments to networks like ABC, CBS, and NBC, according to sources. Payments to these networks, which can reach tens of millions of dollars per year, have been as much as 90 days past due. This has led to frustration among the network owners, who have had to chase after the fees even after agreeing to payment plans. The reasons behind Allen Media Group’s repeated lateness in payments remain unclear.
After CNBC reached out to Allen Media Group for comment, the group made a payment on the outstanding fees. The payment was made possible in part by retransmission fees from cable TV operators. Despite the late payments, Allen Media Group has continued to grow, acquiring over $1 billion in media properties in recent years. The company remains strong and continues to manage its partner relationships prudently, according to a statement from company representatives. job cuts have been reported at various divisions of Allen’s company, with more expected at the end of August.
Allen’s late payments contrast with his frequent multibillion-dollar bids for media assets in recent years. Investment bankers and financial institutions have reportedly lost faith in Allen as a serious buyer for large assets due to failed bids. Allen’s recent acquisition attempts include bids for Paramount Global, ABC, Disney networks, Paramount’s BET Media Group, and a reported offer for Tegna. Allen has been vocal about his ambitions to grow his media holdings, defending his track record of failed bids.
Allen, a former comedian, founded Entertainment Studios, now known as Allen Media Group, in 1993. Since then, he has built up his broadcast media empire with a string of smaller deals, including the acquisition of The Weather Channel and broadcast TV stations. Most recently, Allen Media Group paid $380 million for seven stations from Gray Television. Allen’s broadcast stations generate revenue through advertising and retransmission fees, though the industry has faced challenges as more people switch from traditional TV to streaming platforms.
Despite the challenges facing the broadcast industry, Allen’s Allen Media Group continues to push for further growth. The company has been active in pursuing acquisitions and bidding for media properties, with a reported interest in Paramount before its “go-shop” period expires. Allen has expressed confidence in his ability to secure deals in the future, despite recent setbacks. The company’s acquisitions have included smaller TV networks like Pets.tv and Comedy.tv, as well as TheGrio, a Black news and entertainment network. As the industry faces changes due to shifting consumer habits, Allen Media Group remains focused on expanding its presence in the media landscape.
