Byron Allen Sells 10 Local TV Stations to Gray Media in $171 Million Deal

What's Happening?

Byron Allen, a comedian turned media mogul, has initiated the sale of 10 local TV stations from his company, Allen Media Group, to Gray Media for $171 million. This transaction involves stations primarily located in the southern and midwestern United States, which will complement Gray Media's existing portfolio of approximately 180 local stations across 113 markets. The deal will also introduce Gray Media to three new markets: Columbus-Tupelo, Mississippi; Terre Haute, Indiana; and West Lafayette, Indiana. The stations being sold include affiliates of major networks such as ABC, NBC, CBS, and Fox, with locations in Huntsville, Alabama; Paducah-Cape Girardeau-Harrisburg; Evansville, Indiana; and several others. The sale is expected to close in the fourth quarter, pending approval from the Federal Communications Commission (FCC).

Why It's Important?

This sale marks a significant shift in the local television landscape, as Gray Media expands its reach and strengthens its market presence. For Byron Allen, this move is part of a broader strategy to adapt to the rapidly evolving media environment, which has seen his company, Allen Media Group, make strategic cuts and financial adjustments over the past year. The transaction allows Gray Media to create duopolies in existing markets, potentially increasing its advertising revenue and market influence. For Allen, the sale provides capital that could be reinvested into other ventures, such as his syndicated series 'Comics Unleashed,' which recently secured a timeslot on CBS.

What's Next?

The completion of this deal hinges on FCC approval, which is anticipated by the end of the year. Should the transaction proceed as planned, Gray Media will likely focus on integrating the new stations into its existing operations, optimizing content delivery, and leveraging the expanded market presence for increased advertising opportunities. Meanwhile, Allen Media Group may continue to explore further sales or strategic partnerships to streamline its operations and focus on core areas of growth.