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Byron Allen has submitted a bid for TEGNA, a local TV news company that currently has 64 stations in 51 markets.
The business mogul, owner of theGrio and CEO of Allen Media Group, has begun to set his sights on local TV news stations, theGrio previously reported. Back in January, it was revealed that Allen Media Group had plans to invest billions into TV station groups in 2021.
He shared in a statement at the time, “We are looking to deploy more than $10 billion on Big Four affiliates this year…don’t be surprised if you wake up and find an [owned-and-operated] group being sold.”
Now it seems Allen is making good on his statement as he has submitted a bid for local TV new company TEGNA.
TEGNA has received multiple acquisition proposals, with Allen’s being one of them, per The Hollywood Reporter. The company shared in a statement, “Consistent with its fiduciary duty to TEGNA shareholders, the Board will carefully review and evaluate these proposals.” Allen has submitted a joint bid with alternative investment firm Ares Management, according to The Hollywood Reporter.
Allen recently opened up about the possibilities in buying TV stations, theGrio previously reported. When discussing how Fox recently saw “$2.4 billion in revenue while NBCUniversal saw just over according to $2 billion,” Allen shared, “That’s why I’m buying TV stations, they’re a great business. You want to be in both national and local business. It’s good, smart diversification.”
He added, “It’s not easy to get people to sell because it’s a phenomenal business…political money is the new Super Bowl.”
As of July, Allen owned 24 stations in 20 markets, seriously expanding his entertainment empire.
The Allen bid is reportedly $23 per share, which is higher than private equity giant Apollo’s all-cash joint bid with Standard General at $22 per share, per Bloomberg. Both Allen Media Group and Apollo had their eyes on TEGNA back in 2020, but the company “dropped sale plans in late March of 2020 due to the uncertainty of the novel coronavirus pandemic.”
2021, however, has been a strong year for the local TV space.
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