Media Mogul Byron Allen Tenga Bid Could Be Game Changer

Byron Allen, the 1980s comedian-turned-media-mogul who owns the Weather Channel, is angling to buy a massive chain of TV stations that were formerly owned by the Gannett newspaper giant — and the outcome could make or break his budding business empire, according to The NY Post citing insiders.

Allen ia eyeing an $8 billion deal to acquire Tegna, a chain of 64 TV and radio stations that span more than 50 markets across the US.

Allen’s motives may have become clearer last week when Fox launched a 24-hour streaming weather app that media insiders say looks like the basis for a new cable-TV channel. Fox Weather will likely have significant leverage as it eyes a rollout given the clout of Fox’s news and sports channels — and the Weather Channel is in its crosshairs, sources said.

Fox’s app, which touts free always-on video streaming and 3-D radar, will be broadcast from a newly renovated studio at its Midtown headquarters and can also take content from local Fox stations around the US. “Fox’s network of dual-polarity Doppler radars, helicopters, reporters and news crews around the world lets us show you weather in a way you’ve never seen before,” according to its Web site — illustrating what the incumbent Weather Channel and Allen are up against.

If 60-year-old Allen — whose Allen Media Group thus has amassed 33 local TV network affiliate stations — gets his hands on Tegna’s 64 stations, his bargaining position with cable giants could get a major boost. Allen also could gain leverage to sell cable companies his other nine fledgling networks including Pets.TV, Comedy.TV, Recipe.TV and Cars.TV.

One problem: Allen is bidding for Tegna’s TV stations against the hedge fund Standard General, whose CEO Soo Kim owns the Bally’s casino empire and is teaming up in his bid with Apollo Global Management, the deep-pocketed private-equity giant. They have already submitted a fully financed offer of $22 a share for Tegna, according to multiple sources.

That offer comes with its own issues — and could create an opening for Allen. Standard General earlier this year launched an unsuccessful proxy contest to oust Tegna Chief Executive David Lougee, pointing to allegations of discrimination and racial bias against Tegna, which Lougee denied. The Standard General-Apollo team would push out Tegna’s current management; Allen would keep them, according to sources familiar.

Nevertheless, sources said Allen may face an even bigger problem himself, which is that the Weather Channel’s business took a major hit during the pandemic. As TV advertising dried up, Allen Media’s earnings fell from about $185 million to $130 million before it closed in August on an acquisition of 10 stations from Gray Television — giving it a modest boost, according to a person familiar with the company’s finances.