As Media Industry Pressures Mount, Byron Allen Sells 10 Local TV Stations to Gray Media in $171 Million Deal

Media mogul Byron Allen has begun divesting his local television holdings, selling 10 stations to Gray Media in a $171 million transaction that marks the first major sale from his 28-station portfolio amid unprecedented industry-wide restructuring affecting all traditional media companies.

Allen’s strategic divestiture comes as the broader media landscape faces severe financial pressures, with major conglomerates announcing significant workforce reductions. Most recently, Paramount Global President Jeff Shell warned that upcoming layoffs would be “painful but quick” as the company prepares for another round of cost-cutting following its merger with Skydance Media. Shell’s comments underscore the industry-wide challenges that have forced even the largest media companies to dramatically restructure operations.

The deal represents approximately one-third of Allen Media Group’s local TV assets, which the company put on the market in June through investment bank Moelis & Company. The sale is part of Allen’s broader strategy to reduce debt obligations accumulated through aggressive media acquisitions, reflecting similar moves across an industry where streaming competition and cord-cutting have forced widespread consolidation and cost-cutting measures.

Gray Media, which operates approximately 180 local stations across 113 markets, will acquire stations primarily located in the South and Midwest. The acquisition creates duopolies in several existing Gray markets while expanding the company’s reach into three new markets: Columbus-Tupelo, Mississippi; Terre Haute, Indiana; and West Lafayette, Indiana.

Station Portfolio Details

The sold stations include affiliates across major broadcast networks:

– **WAAY** (ABC) – Huntsville, Alabama

– **WSIL** (ABC) – Paducah-Cape Girardeau-Harrisburg

– **WEVV** (CBS) – Evansville, Indiana

– **WFFT** (FOX) – Fort Wayne, Indiana

– **WCOV** (FOX) – Montgomery, Alabama

– **KADN** (FOX) – Lafayette, Louisiana

– **WTVA** (NBC) – Columbus-Tupelo, Mississippi

– **WREX** (NBC) – Rockford, Illinois

– **WTHA** (CBS) – Terre Haute, Indiana

– **WLFA** (NBC) – West Lafayette, Indiana

Gray Media expects the transaction to close in the fourth quarter pending Federal Communications Commission approval.

Financial Pressures Drive Sale

Allen’s decision to sell comes as his media empire faces mounting financial pressures amid broader industry-wide challenges affecting traditional media companies. The entire sector is experiencing what industry analysts describe as a fundamental restructuring, with companies from Paramount Global to Warner Bros. Discovery implementing major layoffs and asset sales to adapt to changing consumer habits and advertising market dynamics.

The comedian-turned-mogul invested over $1 billion acquiring local TV stations and other media assets, including full ownership of The Weather Channel and stakes in Diamond Sports Group, during a period when the entire media landscape was undergoing rapid transformation driven by streaming platforms and digital advertising shifts.

Allen Media Group refined its $100 million revolving credit facility in February, issuing new senior notes due in four years to provide additional operational runway. The refinancing eliminated the company’s revolving credit capacity for future acquisitions while improving quarterly cash flow prospects.

The sale follows several unsuccessful high-profile acquisition attempts, including bids for Paramount Global’s BET Media, The Walt Disney Company’s ABC network, and broadcast giant TEGNA. These failed pursuits highlighted the company’s debt constraints and shifted focus toward debt reduction rather than expansion.

Operational Restructuring

Allen’s financial challenges have already impacted operations across his media holdings, resulting in significant workforce reductions and strategic repositioning. In April 2024, his multiplatform outlet TheGrio conducted layoffs affecting the video team, podcast division, and managing editor position as part of what the company described as “strategic changes to better position the company for growth.”

The company previously wound down certain broadcast networks, including This TV and The Grio’s linear television presence, with the latter transitioning from broadcast television to online-only distribution. These moves reflect broader cost-cutting initiatives as traditional media companies across the industry grapple with declining revenues and changing consumer preferences.

Allen also initially attempted to replace local meteorologists at regional stations with outsourced Weather Channel forecasts, but reversed course following advertiser and viewer backlash. The controversial move highlighted the delicate balance between cost reduction and maintaining local programming quality that resonates with advertisers and audiences.

Remaining Assets and Future Strategy

Allen Media Group retains 18 local TV stations across 21 markets following the Gray Media sale. Remaining properties include affiliates in major markets such as Honolulu, Hawaii; Madison, Wisconsin; Flint, Michigan; and Tucson, Arizona.

The piecemeal approach to selling stations suggests Moelis & Company is pursuing multiple buyers to maximize returns rather than seeking a single purchaser for the entire portfolio. Industry sources indicate additional sales announcements are expected as Allen continues debt reduction efforts.

Despite financial pressures, Allen has maintained some expansion activities. His syndicated series “Comics Unleashed,” which he hosts, recently secured the 12:30 a.m. timeslot on CBS, providing continued revenue from his entertainment programming division.

Industry Context

The local television industry continues facing unprecedented challenges from cord-cutting, streaming competition, and the ongoing shift of advertising dollars to digital platforms. These industry-wide pressures have compressed station values and advertising revenues, affecting operators of all sizes from major broadcasters to independent station groups.

Traditional media companies across the sector have been forced to adapt business models, with many pursuing consolidation strategies or divesting non-core assets to maintain financial stability. The industry has witnessed widespread layoffs at major outlets, from CNN and ESPN to Paramount and NBCUniversal, as companies adjust to reduced advertising revenues and subscription pressures. Even major media conglomerates have announced significant workforce reductions and asset sales as they navigate the changing landscape.

Gray Media’s acquisition of Allen’s stations reflects ongoing consolidation as larger operators seek economies of scale and market dominance to weather industry headwinds. The combined operational efficiencies and advertising sales advantages from station clustering have become essential survival strategies in the current environment.

Allen’s original investment thesis involved acquiring “big four” network affiliates during a period of industry transition, betting on the continued value of local news and programming. However, the accelerating pace of media industry disruption, combined with high debt service costs and intensifying competition from streaming platforms, ultimately necessitated the current divestiture strategy.

The broader media sector has seen similar moves, with companies like Paramount Global, Warner Bros. Discovery, and Disney all pursuing asset sales and cost reductions to address changing consumer habits and advertising market dynamics.

The $171 million transaction values the 10 stations at an average of $17.1 million each, though individual market characteristics and network affiliations likely created significant variation in per-station pricing.