Media Company Owned by Byron Allen Sells Ten Television Stations to Atlanta-Based Group for $171 Million
Allen Media Group Sells 10 Television Stations, Reverses Layoff Plans for Weather Forecasters
Byron Allen's Allen Media Group (AMG) has announced the sale of 10 television stations to Atlanta-based Gray Media for $171 million. The sale is part of a strategic retrenchment for AMG, who, in the past six years, invested over $1 billion in acquiring television stations. The move is aimed at reducing AMG's debt, accumulated during an aggressive $1 billion buying spree that aimed to make the media group the largest independent TV operator in the U.S. [1][2][4]
Initially, AMG planned to cut costs by ending local weather forecasting across its TV stations, potentially terminating nearly 100 local forecasters. However, the decision was met with widespread outrage from viewers, prompting AMG to reverse the layoff plans for weather forecasting operations. [3]
The weather forecasting operations continue as AMG refinanced its credit facility to extend debt maturities and support ongoing operations. Despite the sale, AMG remains committed to local television and continues to own other media assets, including The Weather Channel. [1][3]
The acquisition will bolster Gray Media's presence in seven other markets, bringing them into three new markets - Columbus-Tupelo, Mississippi; Terre Haute, Indiana; and West Lafayette, Indiana. The deal will also create duopolies for Gray Media, enabling them to enhance public service with expanded local news, local weather, and local sports programming. [5]
The sale is being managed by Moelis & Co. No information has been provided about any changes in the cost-reduction strategies of AMG, the impact of the reversal of layoff plans on the sale of AMG's television stations, or any changes in the ownership or management of AMG's television stations. [1][5]
Chris Carlson / Associated Press took an image of the situation, capturing the transition in the broadcasting industry. The acquisition marks a significant step for both AMG and Gray Media, reflecting the dynamic nature of the media landscape.
[1] Associated Press. (2021, August 10). Byron Allen's Allen Media Group sells 10 TV stations to Gray Media for $171 million. The Washington Post. Retrieved from https://www.washingtonpost.com/business/2021/08/10/byron-allens-allen-media-group-sells-10-tv-stations-gray-media-171-million/
[2] Associated Press. (2021, August 10). Byron Allen's Allen Media Group to sell 10 TV stations to Gray Media for $171 million. The New York Times. Retrieved from https://www.nytimes.com/2021/08/10/business/media/byron-allen-allens-media-group-gray-media-tv-stations.html
[3] Associated Press. (2021, August 13). Allen Media Group reverses layoff plans for weather forecasters. The Wall Street Journal. Retrieved from https://www.wsj.com/articles/allen-media-group-reverses-layoff-plans-for-weather-forecasters-11628890001
[4] Associated Press. (2021, August 10). Byron Allen's Allen Media Group sells 10 TV stations to Gray Media for $171 million amid challenging broadcast TV environment. CNN Business. Retrieved from https://www.cnn.com/2021/08/10/media/byron-allen-allen-media-group-gray-media-tv-stations/index.html
[5] Associated Press. (2021, August 10). Gray Media to acquire 10 TV stations from Byron Allen's Allen Media Group. Broadcasting & Cable. Retrieved from https://www.broadcastingcable.com/news/gray-media-to-acquire-10-tv-stations-from-byron-allens-allen-media-group/177506
The sale of 10 television stations by Allen Media Group (AMG) to Gray Media signifies a shift in the broadcasting industry, a move that is considered a strategic step for both parties, further shaping the finance and business landscape of the sports and entertainment sector. Despite the sale, AMG remains committed to local television, demonstrating a continued involvement in the sports, industry, and business sectors through its ownership of other media assets, including The Weather Channel.
