Comedian-turned-media mogul Byron Allen is facing significant shakeup as his company, Allen Media Group, undertakes major cost-cutting measures and workforce reductions. The company, which operates the Weather Channel and owns 12 cable networks and 27 ABC, CBS, Fox and NBC television stations across 21 markets, announced recently that approximately 300 employees, or 12 percent of its 2,500-strong workforce, will be laid off.
Company Jobs On The Line At Allen Media
This move marks a stark departure from the company’s 31-year history, which had not previously seen such large-scale layoffs, The New York Post reported.
Sources indicate that these layoffs are part of a broader $100 million cost-cutting initiative aimed at stabilizing the company’s finances. This strategy includes not only reducing the workforce but also selling and leasing back broadcasting equipment.
Adding to the financial upheaval, Allen has reportedly begun selling some of his personal real estate holdings. These actions come on the heels of several high-profile, albeit unsuccessful, acquisition attempts.
Media mogul Byron Allen has been actively pursuing the acquisition of film and TV giant Paramount Global, and he claims that identifying regulatory approval as the main challenge in the company’s auction.
Allen Still Trying To Acquire Paramount
Paramount is also being courted by Skydance Media, and jointly by Apollo Global Management Inc. and Sony Group Corp. The successful bidder will need approval from the U.S. Federal Communications Commission (FCC), Allen noted during an interview at the Milken Institute Global Conference in Beverly Hills in early May, Bloomberg reported.
“My advice would be to walk into the FCC with someone who is FCC approved,” Allen stated. “We are broadcasters first, and we are FCC approved. That is the key.”
While Allen’s bid values Paramount at approximately $30 billion when including existing debt, Sony and Apollo have offered $26 billion.
The backdrop to these financial maneuvers includes a decline in media ad spending, which constitutes over 60 percent of Allen Media’s revenue. Concurrently, the company is grappling with rising interest rates on its $1 billion debt.
Despite these challenges, Allen Media projects optimism about the future. The company anticipates that this week’s layoffs. “Allen Media Group is making strategic changes to better position the company for growth that will result in expense and workforce reductions across all divisions of the company,” a spokesman for Allen Media stated. The spokesman also emphasized that Allen Media’s brands continue to perform well and that their revenue growth has outpaced the market in many areas.
The financial outlook for Allen Media remains precarious. The company’s most junior debt is currently trading at about 50 cents on the dollar, while its more senior debt trades at approximately 90 cents on the dollar. No principal payments are due until 2027. Allen Media reported a 19 percent decline in earnings before interest, taxes, depreciation, and amortization (EBITDA) to $83 million in the fourth quarter of last year. Moody’s projected that the company would lose $37 million in 2023, with an expected profit of $60 million this year, The New York Post reported.
Homes For Sale
In the midst of this, Allen, has listed two neighboring properties in Beverly Hills, California, with a combined asking price of nearly $40 million.
The larger of the two is 7,500 square feet. The 1991 property features five bedrooms and 5.5 baths. It is listed at $29,995,000, according to Realtor.com. Sitting on nearly an acre, it rests above the trees, giving clear views of the ocean and downtown Los Angeles. Outside, the property features a terrace with a curved infinity pool and massive space for entertaining.
The second estate, with its Tudorlike exterior is next door, is just over 3,000 square feet. Listed at $9,995,000, the home, built in the 1950s, has three bedrooms and three baths.
Allen, whose net worth is estimated at $750 million, according to Bloomberg, also has a $100 million compound in Malibu, which he bought in 2022.
I love the title of this article, it creates a narrative as if he and his holding group is financially unstable. Meanwhile ABC/ESPN (DISNEY being the parent company) made significantly more cuts and layoffs but you don’t see articles like this about its CEO Bob Igar….
Makes you wonder the real intent behind this article
Good point. Sad to see this. It’s really
to say but it is none of my business. You are accurate concerning facts about black people and what they are losing when financial mattters occur than their counterparts when their finances take a hit. You don’t even know where they live most of the time.