Byron

Media mogul Byron Allen has reached a deal to sell 10 television stations for $171 million to Atlanta-based Gray Media.

Gray and Allen Media Group announced the agreement Friday.

Allen’s stations in Huntsville, Ala.; Montgomery, Ala.; Fort Wayne, Ind.; Lafayette, La.; and Paducah, Ky.; were part of the transaction. Each station has affiliations with one of the Big Four broadcast networks: ABC, Fox, NBC and CBS.

The move furthers Allen’s retrenchment after a $1-billion buying spree in recent years. Allen had a goal of becoming the largest independent television operator in the U.S. But the build-up — which came during an increasingly challenging period for broadcast TV — left the Los Angeles-based company burdened with debt.

This spring, Allen Media Group hired investment banking firm Moelis & Co. to sell his network-affiliate television stations.

Allen Media Group, which was founded by Allen in 1993, continues to own television stations and channels, including Pets.TV, Comedy.TV and Cars.TV, entertainment studios and the Weather Channel.

The Los Angeles entrepreneur and former stand-up comedian had been steadily expanding his empire for more than a decade.

With the purchase of Allen’s stations, Gray moves into three new television markets: Tupelo, Miss.; Terre Haute, Ind.; and West Lafayette, Ind.

Gray owns a second station in several of the other locations. The company said in a statement that the combination, known in the industry as a “duopoly,” will allow it to provide “expanded local news, local weather, and local sports programming.”

The deal, which requires the approval of the Federal Communications Commission, should be complete by year’s end, the companies said.

In a significant retrenchment, media mogul Byron Allen has retained investment banking firm Moelis & Co. to sell his network-affiliate television stations after spending more than $1 billion to scoop up outlets in smaller markets.

The Allen Media Group announced the news Monday morning. It owns nearly two dozen stations, including in Northern California near Redding, as well as Honolulu; Flint, Mich.; Madison, Wis.; and Tupelo, Miss.

The company needs to pay down debt, Allen said in a statement.

Allen’s firm declined to provide details on its finances.

The Los Angeles firm has spent big bucks during the last six years buying stations with a goal of becoming the largest independent television operator in the U.S. Many of Allen’s stations have standing in their markets with programming from one of the Big Four broadcast networks: ABC, CBS, NBC and Fox.

“We have received numerous inquiries and written offers for most of our television stations and now is the time to explore getting a return on this phenomenal investment,” Allen, chairman and chief executive, said in a statement. “We are going to use this opportunity to take a serious look at the offers, and the sale proceeds will be used to significantly reduce our debt.”

Allen Media Group, which was founded by Allen in 1993, also owns a dozen television channels, including the Weather Channel.

The Los Angeles entrepreneur and former stand-up comedian had been steadily expanding his empire for more than a decade.

However, the television advertising market has become increasingly challenged in recent years as media buyers shift their budgets to digital platforms where they are more likely to find younger consumers. The television advertising market has become more strained with the addition of streaming services, including Netflix, Amazon Prime Video and Paramount+ competing with legacy stations for dollars.

A decade ago, Allen brought a high-profile $20-billion lawsuit against two of the nation’s largest pay-TV distributors, Comcast and Charter Communications, alleging that racism was the reason his small TV channels were not being carried on those services.

The case ultimately reached the U.S. Supreme Court and was legally significant because it relied on the historic Civil Rights Act of 1866, which was enacted a year after the Civil War ended and mandated that Black citizens “shall have the same right … to make and enforce contracts … as is enjoyed by white citizens.”

But the Supreme Court struck down many of Allen’s arguments. In a 9-0 decision in March 2020, the high court said it was not enough for a civil rights plaintiff to assert that his race was one of several factors that motivated a company to refuse to do business with him. Instead, the person must show race was the crucial and deciding factor.

Last month, CBS picked up his show “Comics Unleashed with Byron Allen” to run at 12:35 a.m.