Byron Allen is getting out of the local TV game.
In a press release on Monday, June 2, the mogul’s Allen Media Group (AMG) said it retained investment bank Moelis & Company to sell its 28 broadcast stations around the country, in an effort to “significantly reduce Allen Media Group’s debt.”
As part of the agreement, Moelis will help AMG find buyers for its ABC, NBC, CBS, and Fox affiliated stations in 21 different markets.
Related: Layoffs Sweep Through Byron Allen’s TheGrio
Allen, who is founder, chairman and CEO of Allen Media Group, noted that he’d previously received offers for the stations, but held onto them until now.
“Six years ago, Allen Media Group began the process of investing over one billion dollars to acquire big four network-affiliated television stations. 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 said in the release.
“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,” he added.
According to its website, the company owns stations in Tupelo, Mississippi; Eugene, Oregon; Terre Haute, Indiana; Fort Wayne, Indiana; Huntsville, Alabama; Rockford, Illinois; Honolulu, Hawaii; and other markets. You can see the full list here.
But AMG has faced backlash in recent months for layoffs and intense cost-cutting measures at the stations.
On Jan. 19, TV News industry blog FTV Live criticized AMG after the company unveiled a plan for its stations to air weather forecasts recorded by meteorologists at The Weather Channel in Atlanta — which AMG also owns — instead of having local forecasters update viewers on weather conditions.
AMG touted the centralized weather plan as “groundbreaking,” but FTV Live said the company was spouting “bullshit” public relations spin to hide the fact that it was trying to save money.
Days later, Variety published an article saying AMG was “taking the local out of local TV” by “getting rid of trusted local weather anchors in a cost-saving move.”
The Variety story described the decision as “tone deaf,” and pointed out that viewers are “attached” to their local weathercasters.
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