Byron Allen Raises Ire From ABC, CBS, NBC Over Payment Delays

Broadcasters owned by Byron Allen, the media mogul who has expressed public interest in buying up various media assets for billions of dollars, have been routinely late in making payments to network owners, sparking the ire of media allies and creating distance between Allen and his potential business partners, Vscek has learned.

Stations owned by Allen Media Group are as much as 90 days behind in payments to networks including ABC, CBS and NBC, according to people familiar with the matter. The payments total tens of millions of dollars over the course of the year, and the extent of the delay has worsened over time, said the people, who asked not to be named because the financial transactions are private.

According to the group’s website, Allen Media Group owns radio stations in more than 20 markets, including ABC, CBS and NBC affiliates.

ABC, CBS and NBC have grown increasingly frustrated after what appears to be a continued chase for rates, even after agreeing to payment plans at Allen’s request, the people familiar said. Consistent late payments are rare among local broadcasters, which pay large sums to owners of larger networks to carry branding and some content, especially live sports like the NFL and many postseason games across all leagues, the people said.

It is unclear why Allen Media Group has been repeatedly late with payments.

After Vscek reached out to Allen Media for comment this week, the group made a payment on the outstanding fees, according to people familiar with the matter. The amount of the payment was not immediately determined.

Networks often collect fees from local affiliates every one to three months, depending on the contract. The money they pay comes largely from so-called retransmission fees that cable operators pay stations, which can create a situation where money may have to go out before it comes in. Station executives have argued recently that this structure should change as cord cutting accelerates and networks move more of their content to streaming platforms.

Several divisions of Allen’s company, including stations in markets across the Midwest, Southeast, West Coast and Hawaii, have also reportedly suffered layoffs in recent months. Another round of job cuts is expected in late August, one of the people familiar with the matter said.

Representatives for Allen Media Group declined to elaborate on this story, but said in a statement: “Mr. Allen founded Allen Media Group 31 years ago from his dining room table. Allen Media Group is now one of the largest and fastest growing privately held media companies in the world and is 100% Black-owned.

“Like most media companies and private equity firms, we evaluate many acquisition opportunities. In recent years, the company has successfully completed over $1 billion in acquisitions with continued support from the capital markets. Allen Media Group remains strong and we continue to prudently manage our partner relationships as we have throughout our 31-year history,” the statement said.

Representatives for ABC, CBS and NBC declined to comment on the matter.

Allen’s delays in payments of tens of millions of dollars stand in stark contrast to his frequent multibillion-dollar bids for media assets. His pursuit of unsuccessful deals in recent years has led investment bankers and financial institutions to lose confidence in Allen as a serious buyer for large assets, according to three investment bankers and a person familiar with the matter.

Allen’s recent M&A interests include a $30 billion bid for Paramount Global earlier this year, a $10 billion offer for ABC and other Disney networks last year, and a reported $3.5 billion offer for Paramount’s BET Media Group, which he resubmitted in December after the process concluded.

There has also been recent news that Allen is considering another offer for Paramount before the “go-shop” period with buyer Skydance expires at the end of this month.

Allen has been outspoken about his ambitions to grow his media holdings, defending his history of failed bids and telling Vscek in January that recent takeover attempts had failed because some owners ultimately decided not to sell.

“We have a lot of banks that are backing us and supporting us, and private equity firms as well,” Allen told Vscek in September of the potential deal for ABC and other Disney assets. “I think other assets will start to come in, and I think we’ll eventually get them.”

Allen Media Group has begun republishing on its website public media reports expressing interest in bidding for media properties, including unconfirmed reports of interest, such as a reported $8.5 billion bid for Tegna.

A former comedian, Allen founded Entertainment Studios, now known as Allen Media Group, in 1993. Allen Media Group Broadcasting was founded in 2019, and Allen has since continued to build his media empire with a series of smaller deals.

In addition to The Weather Channel and its television stations, Allen Media also owns a group of small television networks such as Pets.tv and Comedy.tv, as well as the black news and entertainment network TheGrio.

Most recently, in April, Allen Media paid $380 million to Grey television for seven stations as part of the divestitures Gray requested in his acquisition of Quincy Media.

Allen’s broadcasters generate revenue, like most other broadcasters, through advertising revenue and so-called retransmission fees, the payment broadcasters receive from pay-TV operators for the right to broadcast their feed. But broadcast groups have also suffered as millions of people have switched from traditional TV to streaming.

A record surge in political advertising is expected ahead of the presidential election, as some of the world’s largest radio and television station owners such as Nexstar Media Group AND Sinclair as documented in recent earnings press releases.

Disclosure: Comcast’s NBCUniversal is the parent company of Vscek and the NBC television network.