Byron Allen, founder and CEO of Entertainment Studios Networks (parent company of theGrio), is no stranger to bold – and many times historic – business moves. Now, it’s being reported that he’s made an all-cash bid for Tegna, the broadcasting, digital media and marketing services company headquartered in Tysons, Virginia.
According to Deadline, Allen is one of only three potential buyers eyeing the company. A source close to the situation reports that he offered $20 a share, which comes out to approximately $8.5 billion dollars. Also in the running is Gray Television, which last week made an offer for $20 a share but in a combination of cash and stock.
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A similar bid has additionally been made by private equity firm Apollo Global Management, which recently acquired stations from Cox. Allen appears to be the only one offering all cash.
The publication points out, “Allen’s offer represents a significant premium to the current price of Tegna shares, which have been buffeted like other media stocks (and just about all stocks) by the market’s recent slump. Tegna closed down 8% Wednesday at $16.02. The volatility, due to deepening fears of the coronavirus pandemic, may make an all-cash offer particularly attractive.”
READ MORE: Byron Allen’s Entertainment Studios buys 11 TV stations for $305 million
Comedian-turned media mogul Byron Allen makes $8.5-billion bid for TV station owner https://t.co/PSMTKDUxXT
— LAT Entertainment (@latimesent) March 12, 2020
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Last month, Allen Media Broadcasting, a division of Entertainment Studios, acquired 11 broadcast television stations from USA Television Holdings LLC and USA Television MidAmerica Holdings LLC (collectively, USA TV) for $305 million.
“Over the past six months we’ve invested nearly $500 million to acquire best-in-class, top-tier, broadcast network affiliates,” the media mogul said at the time. “We plan to invest approximately $10 billion to acquire ABC, CBS, NBC and Fox television stations over the next three years with the goal of being one of the largest broadcast television groups in America.”
Currently, Allen Media owns 15 television stations in 11 markets and a handful of cable networks, including the Weather Channel.