Byron Allen's Media Empire Struggles: Unpaid Fees and Acquisition Doubts Mount
Byron Allen’s Media Empire Faces Payment Challenges Amid Expansion Efforts
Media mogul Byron Allen’s broadcast stations have been consistently late in making payments to major network owners, according to industry sources. The stations, owned by Allen Media Group, have reportedly fallen as much as 90 days behind on payments to networks including ABC, CBS, and NBC, with outstanding fees totaling tens of millions of dollars throughout the year.
Allen Media Group, which owns broadcast stations in more than 20 markets across ABC, CBS, and NBC affiliates, has faced growing frustration from these networks over what they describe as a “perpetual chase” for fees. This pattern of late payments is considered uncommon among local broadcasters, raising questions about the financial health of Allen’s media empire.
The reasons behind Allen Media Group’s payment delays remain unclear. However, following inquiries from CNBC, the group reportedly made a payment on the outstanding fees. Representatives for Allen Media Group declined to comment on specific details but emphasized the company’s growth and acquisition history.
This financial turbulence comes amid Allen’s ambitious expansion plans, including recent multibillion-dollar bids for major media assets. These include a $30 billion bid for Paramount Global, a $10 billion offer for ABC and other Disney networks, and a $3.5 billion offer for Paramount’s BET Media Group. Despite these high-profile moves, investment bankers and financial institutions have reportedly lost confidence in Allen as a serious buyer for large assets.
Allen, who began his career as a comedian, founded Entertainment Studios (now Allen Media Group) in 1993. The company has since grown to include ownership of The Weather Channel, numerous broadcast TV stations, and several niche TV networks. In April, Allen Media paid $380 million to Gray Television for seven stations, further expanding its portfolio.
The broadcast industry as a whole has faced challenges as viewers increasingly shift from traditional TV to streaming services. However, a record uptick in political advertising is expected ahead of the upcoming presidential election, potentially offering a boost to broadcast station groups.
As Allen Media Group navigates these financial hurdles, the industry watches closely to see how the company will balance its ambitious growth plans with its current financial obligations.
