Posts tagged with "art and entertainment"

Will Black Entertainment Television Be Black-Owned Again?

It appears Paramount Global has had a change of heart regarding the sale of BET. In August 2023, the entertainment company announced that it had ended its plan to sell a majority stake in BET Media Group, which ​​includes the BET channel, BET+, VH1, and BET Studios, as previously shared by AFROTECH. The reasoning for the change of plans was that “a sale wouldn’t result in any meaningful deleveraging of its balance sheet.” However, on Dec. 20, Bloomberg reported that Paramount Global is in talks to sell BET to a management-led investor group. Among the potential bidders is Byron Allen, founder and CEO of Allen Media Group, who previously showed interest.

The media mogul has returned with a new offer as he pursues making the network Black-owned again. According to Bloomberg, Allen has placed an offer of $3.5 billion. The outlet also details that during his initial bid, he collaborated with four banks and two private equity firms to make a $3 billion offer.

“You are pursuing an inside sale at a below-market price with management that will not yield the highest price for the stockholders,” Allen wrote in an email to Paramount Global’s management and board, per the outlet. “We believe it 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, particularly, in order to provide a sweetheart deal to an insider at the expense of public shareholders.”

Allen’s letter comes after Tyler Perry described the previous bidding process as “disrespectful,” AFROTECH mentioned in October 2023.

Perry reportedly placed a bid of $2 billion at the time. “Don’t try to get me to pay for something that’s not worth anywhere near the value,” he said during Bloomberg’s Equality Summit, according to The Atlanta Journal-Constitution. While Perry seems to have walked away from further pursuing BET, Allen has kept himself in the race. Other potential buyers that have been named are Scott Mills, CEO of BET, and CC Capital Partners Founder Chinh Chu.

Original Report by AFROTECH