television station

L.A. media mogul Byron Allen sells 10 TV stations to Gray Media

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.

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What the demise of the Corp. for Public Broadcasting means

The Corp. for Public Broadcasting, which helps pay for PBS, NPR, 1,500 local radio and television stations as well as programs like “Sesame Street” and “Finding Your Roots,” announced last week that it would close after the U.S. government withdrew funding.

The organization told employees that most staff positions will end with the fiscal year on Sept. 30. A small transition team will stay until January to finish any remaining work.

The private, nonprofit corporation was founded in 1968 shortly after Congress authorized its formation. Its demise ends nearly six decades of supporting the production of renowned educational programming, cultural content and emergency alerts about natural disasters.

Here’s what to know:

Losing funding

President Trump signed a bill July 24 canceling about $1.1 billion that had been approved for public broadcasting. The White House says the public media system is politically biased and an unnecessary expense, and conservatives have particularly directed their ire at NPR and PBS.

Lawmakers with large rural constituencies voiced concern about what the cuts could mean for some local public stations in their state. They warned that some stations will have to close.

The Senate Appropriations Committee on Thursday reinforced the policy change by excluding funding for the CPB for the first time in more than 50 years as part of a broader spending bill.

How it began

Congress passed legislation creating the body in 1967, several years after then-Federal Communications Commission Chair Newton Minow described commercial television as a “vast wasteland” and called for programming in the public interest.

The corporation doesn’t produce programming and it doesn’t own, operate or control any public broadcasting stations. The CPB, PBS and NPR are independent of one another, as are local public television and radio stations.

Rural stations hit hard

Roughly 70% of the corporation’s money went directly to 330 PBS and 246 NPR stations across the country. The cuts are expected to weigh most heavily on smaller public media outlets away from big cities, and it’s likely some won’t survive. National Public Radio’s president estimated that as many as 80 NPR stations may close in the next year.

Mississippi Public Broadcasting has already decided to eliminate a streaming channel that airs children’s programming 24 hours a day, including “Caillou” and “Daniel Tiger’s Neighborhood.”

Maine’s public media system is looking at a hit of $2.5 million, or about 12% of its budget, for the next fiscal year. The state’s rural residents rely heavily on public media for weather updates and disaster alerts.

In Kodiak, Alaska, KMXT estimated the cuts would slice 22% from its budget. Public radio stations in the sprawling, heavily rural state often provide not just news but alerts about natural disasters such as tsunamis, landslides and volcanic eruptions.

From Big Bird to war documentaries

The first episode of “Sesame Street” aired in 1969. Child viewers, adults and guest stars alike were instantly hooked. Over the decades, Big Bird, Cookie Monster and Elmo have become household favorites.

Entertainer Carol Burnett appeared on that inaugural episode. She told the Associated Press she was a big fan.

“I would have done anything they wanted me to do,” she said. “I loved being exposed to all that goodness and humor.”

“Sesame Street” said in May it would get some help from a Netflix streaming deal.

Harvard professor Henry Louis Gates Jr. started “Finding Your Roots” in 2006 under the title “African American Lives.” He invited prominent Black celebrities and traced their family trees into slavery. When the paper trail ran out, they would use DNA to see which ethnic group they were from in Africa. Challenged by a viewer to open the show to non-Black celebrities, Gates agreed and the series was renamed “Faces of America,” which had to be changed again after the name was taken.

The show is PBS’ most-watched program on linear TV and the most-streamed nondrama program. Season 10 reached nearly 18 million people across linear and digital platforms and also received its first Emmy nomination.

Grant money from the nonprofit has also funded lesser-known food, history, music and other shows created by stations across the country.

Documentarian Ken Burns, celebrated for creating the documentaries “The Civil War,” “Baseball” and “The Vietnam War,” told “PBS NewsHour” that the corporation accounted for about 20% of his films’ budgets. He said he would make it up but projects receiving 50% to 75% of their funding from the organization won’t.

Influence of shows

Children’s programming in the 1960s was made up of shows like “Captain Kangaroo,” ’’Romper Room” and the cat-and-mouse skirmishes on “Tom & Jerry.” “Mister Rogers’ Neighborhood” mostly taught social skills.

“Sesame Street” was designed by education professionals and child psychologists to help low-income and minority students ages 2 to 5 overcome some of the deficiencies they had when entering school. Social scientists had long noted white and higher-income kids were often better prepared.

One of the most widely cited studies about the effects of “Sesame Street” compared households that got the show with those that didn’t. It found that the children exposed to “Sesame Street” were 14% more likely to be enrolled in the correct grade level for their age in middle and high school.

Over the years, “Finding Your Roots” showed Natalie Morales discovering she’s related to one of the legendary pirates of the Caribbean, and former “Saturday Night Live” star Andy Samberg finding his biological grandmother and grandfather. It revealed that drag queen RuPaul and U.S. Sen. Cory Booker are cousins, as are actors Meryl Streep and Eva Longoria.

“The two subliminal messages of ’Finding Your Roots,’ which are needed more urgently today than ever, is that what has made America great is that we’re a nation of immigrants,” Gates told the AP. “And secondly, at the level of the genome, despite our apparent physical differences, we’re 99.99% the same.”

McAvoy writes for the Associated Press.

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What’s targeted in Trump’s request for $9.4 billion in budget cuts from Congress

President Donald Trump is looking to cancel $9.4 billion in spending already approved by Congress. That’s just a sliver of the $1.7 trillion that lawmakers OK’d for the budget year ending Sept. 30.

The package of 21 budget rescissions will have to be approved by both chambers of Congress for the cuts to take place, beginning with a House vote expected Thursday. Otherwise, the spending remains in place.

The White House is betting that cutting federal investments in public media and some foreign aid programs will prove politically popular. Republicans say if this first effort is successful, they hope more rescission packages will follow as they look to continue work by the so-called Department of Government Efficiency once run by billionaire Elon Musk.

Democrats describe the cuts as inhumane and say they would rip life-saving support from hungry and sick people across the globe. Republicans are describing the cuts as “modest” and say the U.S. will continue to play a critical role in helping the world’s most vulnerable people.

Here’s a look at some of the spending the White House is trying to claw back:

The Republican president has asked lawmakers to rescind nearly $1.1 billion from the Corporation for Public Broadcasting, which represents the full amount it’s slated to receive during the next two budget years. Congress has traditionally provided public media with advanced funds to reduce political pressures.

The corporation distributes the money mostly to public television and radio stations around the country, with some assigned to National Public Radio and the Public Broadcasting System to support national programming.

The White House says the public media system is politically biased and an unnecessary expense.

Much of the conservatives’ ire is focused on NPR and PBS. “We believe that you all can hate us on your own dime,” said Georgia Rep. Marjorie Taylor Greene, during a hearing in March.

But about two-thirds of the money goes to more than 1,500 locally owned public radio and television stations. Nearly half of those stations serve rural areas of the country.

“They want to punish the national guys, that’s fine,” said Rep. Mark Amodei, a Republican who said he was undecided going into this week’s vote. “But I’m trying to get a handle on what it means for my stations in Nevada, because the ability to fundraise at the national level ain’t the same as the ability to fundraise in Reno.”

The association representing local public television stations warns that many of them would be forced to close if the GOP bill passes. Those stations provide emergency alerts, free educational programming and high school sports coverage and highlight hometown heroes.

Meanwhile, local radio stations say their share of the allocation provides funding for 386 stations employing nearly 10,000 people. Dozens of stations rely on the public grants for more than half of their budget. Many others for nearly half.

Some Republicans say they worry about what the cuts would mean for local public stations but tough decisions are necessary.

Rep. Dusty Johnson, R-S.D., said South Dakota Public Broadcasting does a “really good job of covering the state Legislature” and other public affairs.

“So these rescissions are not going to be comfortable for South Dakota to deal with,” Johnson said. “That being said, we’re $37 trillion in debt.”

Funding to combat diseases

Trump’s administration is looking to claw back about $900 million from $10 billion that Congress has approved for global health programs.

That includes canceling $500 million for activities related to infectious diseases and child and maternal health and another $400 million to address the global HIV epidemic.

The administration says the $500 million rescission for infectious diseases would not reduce treatment but would “eliminate programs that are antithetical to American interests and worsen the lives of women and children, like ‘family planning’ and ‘reproductive health,’ LGBTQI+ activities, and equity programs.” It makes a similar assurance on the HIV funding, saying it would eliminate “only those programs that neither provide life-saving treatment nor support American interests.”

Scores of humanitarian aid groups have asked lawmakers to oppose the proposed cuts. Catholic Relief Services called on donors to contact their members of Congress to urge them to vote against the bill. Without the U.S. assistance, “countless lives are at risk, and the needs will continue to rise,” said the plea to supporters.

The importance of the United States’ contribution to the global HIV response cannot be overstated, according to the Joint United Nations Program on HIV/AIDS. It says the President’s Emergency Plan for AIDS Relief, or PEPFAR, has saved more than 26 million lives and averted almost 5 million new HIV infections since it was launched in 2003 under President George W. Bush, a Republican.

“Instead of facing a death sentence, people supported by PEPFAR are raising families, building their communities, and helping their communities grow and develop,” said Rep. Rosa DeLauro, D-Conn.

Refugee assistance

The Trump administration is looking to cancel $800 million, or a quarter of the amount Congress approved, for a program that provides emergency shelter, water and sanitation, and family reunification for those forced to flee their own country. The program also helps vetted refugees who come to the U.S. get started in their new country.

The White House says “these funds support activities that could be more fairly shared with non-U.S. Government donors, providing savings to the U.S. taxpayer.”

Refugees International urged Congress to reject what it described as a reckless proposal.

About 45% of the savings sought by the White House would come from two programs designed to boost the economies, democratic institutions and civil societies in developing countries.

The administration wants to claw back $2.5 billion of the $3.9 billion approved for the Development Assistance program at the U.S. Agency for International Development and about $1.7 billion, or nearly half of the funds, dedicated to the State Department’s Economic Support Fund.

The administration says in its request to Congress that the Development Assistance account is supposed to fund programs that work to end extreme poverty and promote resilient democratic societies, but in practice many of the programs “conflict with American values” and bankroll corrupt leaders’ evasion of responsibilities to their citizens while providing “no clear benefit to Americans.”

U.S. leaders have often argued over the years that helping to eradicate conditions that lead to political upheaval abroad is not just the right thing to do but also the smart thing.

“By helping stem pandemics and war and helping countries become healthy, free-market democracies, we are actually helping our own country,” said Sen. Dick Durbin, D-Ill.

Republicans are rejecting the dire warnings. Rep. Robert Aderholt, R-Ala., said “ waste, fraud and abuse is what this is all about.”

Freking writes for the Associated Press.

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L.A. media mogul Byron Allen hires investment bank to sell television stations

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.

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CBS allowed to distribute Sony’s ‘Wheel of Fortune,’ ‘Jeopardy!’ during lawsuit appeal

CBS has notched another small victory in its legal battle with Sony Pictures Television, winning an appellate court ruling that allows the network to continue to distribute “Wheel of Fortune” and “Jeopardy!” as its court case continues.

Sony owns the shows and produces them on its Culver City lot.

Last month, a Los Angeles judge ruled that Sony was no longer obligated to provide episodes to CBS, which has served for decades as the conduit, delivering batches of episodes to television stations around the country.

After that ruling, the Paramount Global-owned network appealed. A three-judge appellate panel paused the order and asked both sides to submit their arguments.

On Wednesday, the judges wrote that they had reviewed filings from both sides. In a one-page order, the panel granted CBS’ request to keep the stay in place, allowing the network to continue its distribution duties during the appeal .

CBS maintains Sony lacks the legal right to unilaterally severe ties.

Sony terminated its distribution deal with CBS in August and later filed a breach-of-contract lawsuit that claimed CBS entered into unauthorized licensing deals for the shows and then paid itself a commission. Sony also maintained that rounds of budget cuts within CBS had hobbled the network’s efforts to support the two shows.

In February, Sony attempted to cut CBS out of the picture, escalating the dispute.

CBS has said Sony’s claims “are rooted in the fact they simply don’t like the deal the parties agreed to decades ago.”

CBS takes in up to 40% of the fees that TV stations pay to carry the shows. The company took over the distribution of the program when it acquired syndication company King World Productions in 1999.

King World struck deals with the original producer, Merv Griffin Enterprises, in the early 1980s to distribute “Jeopardy!” and “Wheel.” Sony later acquired Griffin’s company, but those early agreements remain in effect.

As viewing of traditional TV has declined due to competition for streaming in recent years, the two daily game shows have continued to thrive and are among the most-watched programs in television.

A Sony representative was not immediately available for comment.

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