LOS ANGELES—Six years after it began expanding into the TV station business, Byron Allen’s Allen Media Group (AMG) today announced it will put all 28 of its network-affiliated TV stations up for sale, having hired Moelis to advise in the transaction.
AMG says it has invested more than $1 billion in acquiring television stations and is one of the largest independent privately held owners of Big Four affiliares (ABC, CBS, Fox and NBC).
In 2021, the company attempted to expand the reach of its local TV affiliates by launching “Local Now,” a free, ad-supported streaming service that offers local news and premium content from more than 300 channels nationwide. It managed to get Local Now distributed on major smart TV OSs as well as on other station groups’ FAST channels.
The company has accumulated an increased amount of debt over the years, however, and in February, announced that it had successfully refinanced its $100 million revolving credit facility, extending its maturities deadline to 2027.
In an ill-fated effort to cut costs further, the company earlier this year began replacing some of its meteorologists at local stations with personalities from The Weather Channel, which it acquired from NBC for $300 million in 2018. After widespread viewer criticism, the company announced less than a week later that it would abandon that plan.
Launched in 1993 by TV personality Byron Allen, AMG is involved in TV production, syndication and owns a group of digital cable and satellite channels.
Increased support by the Brendan Carr-led Federal Communications Commissions for a relaxation of station ownership rules may have also prompted AMG to put the stations up for sale now. Rick Ducey, managing director at BIA Advisory Services, said he is not surprised at today’s announcement. “We all expected to see the M&A space open up for TV in 2025, and here we go,” he said.
Allen, founder, chairman and CEO of Allen Media Group, said the company has “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. 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.”
