Byron Allen's Allen Media Group consistently late with payments to ABC, CBS, NBC

From CNBC: 2024-08-16 14:30:01

Byron Allen’s Allen Media Group broadcast stations have been consistently late in making payments to network owners, such as ABC, CBS, and NBC, with payments totaling tens of millions of dollars throughout the year. Frustration has grown among networks, despite payment plans agreed upon at Allen’s request, which is uncommon among local broadcasters.

After CNBC reached out for comment, Allen Media Group made a payment on the outstanding fees, though it’s unclear why the payments were repeatedly late. The network collects fees from local affiliates every one to three months, with some of the funds coming from retransmission fees paid to stations by cable TV operators.

Allen, known for his pursuit of multibillion-dollar media assets, has faced skepticism from investment bankers due to his late payments despite bids like the $30 billion offer for Paramount Global. Despite failed attempts, Allen has voiced ambitions to expand his media holdings further, defending his track record.

Allen Media Group has been active in acquiring TV networks and stations in recent years, including paying $380 million for seven stations from Gray Television. Though revenue comes from advertising and retransmission fees, the shift towards streaming has impacted broadcast station groups. Political advertising is expected to increase ahead of the election, benefiting station owners.

Comcast’s NBCUniversal, the parent company of CNBC and NBC, is relevant to the news. Allen’s interest in acquiring media assets and his latest bid for Paramount Global is part of his goal to grow his media empire, despite his history of failed bids. Despite challenges with late payments, Allen Media Group remains an active player in the media industry.



Read more at CNBC: Byron Allen draws ABC, CBS and NBC ire with late payments