Byron Allen, the founder, chairman, and CEO of Allen Media Group, has submitted a $3.5 billion bid to purchase the BET Media Group, the second time he’s made an effort to acquire the media properties.
BET Media Group consists of the BET network channel, as well as VH1, BET Studios and their streaming service BET+. Allen Media Group owns a plethora of media companies, including theGrio.
Bloomberg first reported the news, which was followed by reports in several publications, including Variety and Deadline.
Those reports said that Allen entered his new bid after learning that Paramount was about to enter into a deal to sell the BET business to a management-led investor group. Reports placed the deal at just under $2 billion, less than what Variety said was the $2.7 billion Allen bid earlier this year during his first attempt to acquire BET.
Variety, citing its own sources, said Allen sent an email to Paramount’s board and senior executives, saying a below-market sweetheart deal to management would be an “egregious breach of fiduciary duty by the Paramount Global management team and board of directors if BET is sold for anything less than the highest price …”
Paramount is also in discussion with Warner Bros. Discovery on a possible merger of two companies with a combined $39 billion market value to create a news, sports, and entertainment colossus that would reshape the industry.
As theGrio previously reported, Paramount explored selling a majority stake in BET earlier this year, before eventually calling off the process. At the time, Allen, in discussing his interest in BET, said, “BET is a great American brand, and if it becomes available, we’re very interested and will pursue it vigorously. It’s a big opportunity.”
Allen’s renewed interest comes just as Allen Media Group has expanded its board of directors. Per the official press release, AMG’s board of directors has expanded from three to nine. Allen, Carolyn Folks, and Chief Operating Officer Terence Hill are now joined by Janice Arouh, Mark DeVitre, Eric Gould, Sydnie Karras, Chris Malone, and Andy Temple.
“For the past 30 years, I’ve been working with a small board of three directors, but now that Allen Media Group is much bigger as we’ve become highly acquisitive, I am excited to announce the addition of these six new board members,” said Allen in a statement. “I am extremely proud of this board because it is diverse, and the people who make it up are simply the best because they know our business and the media space innately, which allows us to move quickly and efficiently in this rapidly changing landscape.”
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