Media magnate Byron Allen transfers ownership of ten television stations to an Atlanta-based firm in a financial transaction worth $171 million.
Allen Media Group Sells Portfolio of TV Stations to Gray Media for $171 Million
In a move aimed at reducing its rising debt, Byron Allen's media group, Allen Media Group (AMG), has announced the sale of 10 television stations for $171 million to Atlanta-based Gray Media, Inc. The deal, managed by Moelis & Co., is expected to close in the fourth quarter of 2025, subject to regulatory approval, FCC ownership waivers, and standard conditions.
The stations sold cover 21 U.S. markets and include major network affiliates (ABC, NBC, CBS, Fox). The portfolio also includes AMG's streaming service Local Now, 10 24-hour HD television networks, and The Grio. The HD television networks operate in the aforementioned markets and include HBCU GO, JusticeCentral.TV, Pets.TV, and Cars.TV.
Byron Allen, chairman and CEO of AMG, stated that they have received numerous inquiries and written offers for most of their television stations and now is the time to explore getting a return on their investment. The sale brings Gray into three new markets - Columbus-Tupelo, Mississippi; Terre Haute, Indiana; and West Lafayette, Indiana.
The transaction is expected to strengthen Gray's presence in seven other markets by creating new duopolies. However, it's important to note that the sale does not affect AMG's strategy to pay its debt. In February 2025, AMG refinanced its $100 million revolving credit facility to extend debt maturities and support ongoing operations.
Interestingly, the reversal of the layoff plan for local forecasters is not included in the $171 million sale of AMG's television stations to Gray Media, Inc. AMG had initially planned to replace its weather forecasting operations with streamlined operations to reduce costs, which could have led to the termination of nearly 100 local forecasters across 36 outlets. However, following widespread outrage from viewers, AMG has reversed its decision and has not disclosed any specific plans for its weather forecasting operations following the reversal.
At CES 2024, Allen expressed his continued commitment to linear television despite the success of streaming competitors. He stated that he can run these legacy assets better and that there's an enormous waste in the industry due to overspending. This sale, therefore, represents a strategic step towards Allen's goal of becoming the largest independent television operator in the United States, a goal he has been pursuing by investing over $1 billion in acquiring stations over the past six years.
In summary, Allen Media Group's sale of 10 TV stations to Gray Media for $171 million is part of a multi-pronged strategy to manage financial obligations, extend debt maturities, and support ongoing operations. The proceeds from such sales will be used to significantly reduce AMG's debt, reflecting Allen's goal to get a return on his over $1 billion investment in these assets built up over the past six years.
- Despite the sale of their TV stations, Allen Media Group (AMG) continues to pursue its strategy in the realm of news, technology, lifestyle, education-and-self-development, entertainment, sports, and weather through their various platforms, including TheGrio.
- In the realm of technology, Allen Media Group refinanced its $100 million revolving credit facility in February 2025, extending debt maturities and supporting ongoing operations, signifying a focus on long-term financial stability.
- The reversal of the layoff plan for local forecasters highlights Allen Media Group's commitment to providing comprehensive weather coverage, a key aspect in the intersection of technology and lifestyle, despite the sale of its TV stations to Gray Media.
