Byron Allen Paid $300 Million: The Weather Channel Acquired By Entertainment Studios

Byron Allen is all set to expand his company Entertainment Studios, with the purchasing of The Weather Channel, which is a basic cable TV network. He paid a huge capital of $300 Million to the parent company of the channel Weather Group and acquired it under his own company Allen Media.

He has also acquired the streaming service of Local Now, which belonged to Bain Capital, Blackstone Group and NBCUniversal/ Comcast. However, no exact dollar figure has been mentioned yet but sources estimate it to be around $300 Million overall.

The Founder, CEO, and Chairman of Entertainment Studios, Byron Allen, stated that he finds The Weather Channel to be one of the most extremely important and trusted cable networks. It is a channel that broadcasts information which is vitally important for the protection and safety of the human lives.

Allen welcomed The Weather Channel into his cable TV network division, also proudly announced it to be familiar amongst most American households for almost four decades. He mentioned that their decision to acquire this channel was purely strategic, also, they are planning to invest billions of dollars into purchasing more number of media assets that are best around the world.

Byron has shifted his career from a comedian to a successful entrepreneur, has been expanding Entertainment Studios for quite some time now. It has helped him to become the biggest independent producer that follows a first-run syndicated programming.

In the year 2009, Byron had launched 6 different 24-hour television HD networks such as – Recipe.TV, Comedy.TV, ES.TV, Pets.TV, Cars.TV and MyDestination.TV.

During the past couple of years, Allen has focused to emerge as an indie-film producer as well as a distributor and also acquired skills of Freestyle Releasing in the year 2015.  The list of his successful movies includes – Scott Cooper’s film Hostile and 47 Meters Down. Also, he produced two films via motion pictures of Entertainment Studios in 2018 that were screened at Toronto Film Festival includes – Replicas and Chappaquiddick.

Allen will expand his business domain into local and live cable news with the acquisition of the recently added The Weather Channel. Hence, the divisions of Entertainment Studios will now include television broadcast production, syndication, and distribution of above 41 TV networks.

It will comprise of 8, cable TV networks running 24×7; acquisition, production, and distribution of theatrical motion pictures; publishing global news. All these networks will be helpful in making the Entertainment Studios as one of the world’s privately held, leading largest media companies.

Allen is the sole owner with 100% rights over his company Entertainment Studios, who began this initiative twenty-five years ago, from his own dining room.

In the year 2008, The Weather Company was bought from Landmark Communications by Blackstone, NBCU, and Bain, for nearly $3.5 Billion, prior to selling digital assets of the company which worth above $2 Billion to IBM in the year 2015. It also included the famous website Weather.com that carries the name of The Weather Channel.

Currently, the channel is widely used and available at nearly eighty-eight million homes in the US. It has also struggled due to chord-cutting in the past regarding its declined ratings. The channel has faced many challenges being a stand-alone network, despite having partial ownership of NBCU. Being a linear TV network, it still carried out its operation with limited leverage, which includes carriage distributions and negotiations.

It has also faced tough competition from an upstart rival network called AccuWeather. This channel has also been affected due to consumer’s growing interests and dependencies on mobile devices and internet for updates on the weather.

Earlier, The Weather Channel has been up for sale during 2016 when Sinclair Broadcast Group offered $100 Million for acquiring it. Although, after it was acquired by Bain, Blackstone, and NBCU, the channel experimented through various means. It tried running long-form programming by using big-name talents like – Sam Champion from Good Morning America and  Al Roker from Today. However, recently it put its refocus again on its basic lineups including bread and butter, forecast-based programmes.

The CEO, Dave Shull of The Weather Channel stated, they are very much excited about their newest association with Entertainment Studios. As it is one of the largest emerging companies based on global media, he appreciated Byron Allen for acquiring the channel as it will raise its value among the viewers, advertisers, and distributors.

The acquisition of this channel was made through Allen Media LLC, a wholly-owned company of Allen. Byron Allen’s deal was represented by law firms such as – Loeb & Loeb, Nelson Mullins, and Sklar Kirsh. Whereas, law firms like Jones Day and Ropes & Gray was representing The Weather Channel, along with financial advisors such as- PJT Partners, Allen & Company and Stanley.

 

 

 

by TNBC Staff Reporter on April 19, 2018

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