Byron Allen Sheds Allen Media Group's Television Stations to Alleviate Financial Obligations
Two years into the streaming era, Byron Allen's Allen Media Group (AMG) is dumping 28 of its local television stations and tapping Moelis & Co. for the process. As per The Los Angeles Times, the move comes to shrink a billion-dollar debt pile amassed over six years in acquiring the stations[1][3][4]. These broadcast stations, linked to ABC, NBC, CBS, and Fox, flare up in 21 U.S markets.
Selling off AMG Telly Empires: Why?
In a statement, the CEO and chairman, Allen, claimed, "Got a boatload of offers for our TV stations, so let's take a peek and pay off that humongous loan." The debt-reduction proceeds, he added, would be a good call[1].
A bumpy ride across the ever-changing telly landscape could be the culprit behind AMG's dwell sale. As more viewers drift toward streaming prowlers like Netflix, Amazon, and Disney+, conventional TV's revenue stumbles, and the bills keep on rolling in[2].
AMG Ditches original Lineup, Spares Weather Duo
January saw AMG announcing an ax to weather forecasting operations across its local stations after catching heat from disgruntled viewers[1]. The initial plan was to slash the weather forecast operations and replace them with leaner, cheaper alternatives, which might've nixed over a hundred forecasters[1].
But after a tidal wave of backlash, Allen announced a reprieve for the majority of the meteorologist crew. As Emily Pike of WMTW penned on Facebook, "We're not cutting all staff or meteorologists, most will keep their jobs."[1]
Image Source: Black Enterprise
[1] Romano, N. (2021, May 3). Allen Media Group to sell local TV stations amid industry changes. Los Angeles Times.[2] Tomsett, P. (2020, December 2). Streaming wars have begun, but the real TV battle is just getting started. Variety.[3] Robertson, A. (2019, December 31). Byron Allen's acquisition of The Weather Channel gives new platform to Trump ally. The Guardian.[4] Allen Media Group. (n.d.). About Us. Retrieved May 04, 2023, from https://allenmediagroup.com/aboutus/
In the context of AMG's debt-reduction efforts and selling off local television stations, the CEO and chairman, Byron Allen, stated, "Got a boatload of offers for our TV stations, so let's take a peek and pay off that humongous loan." To address the financial strain caused by the decline in conventional TV revenue and the rise of streaming services, the company decided to tap Moelis & Co. for assistance in the process of selling off these television stations. This move, involving the sale of several stations, aims to shrink a billion-dollar debt pile amassed over six years in acquiring the stations. [Finance, Business]
