Monday, June 16, 2025

Media Mogul Byron Allen Settles With McDonald's


Byron Allen, through his companies Entertainment Studios Networks and Weather Group, has reached a confidential settlement with McDonald’s in a $10 billion lawsuit filed in 2021, averting a trial set for July 15, 2025, in Los Angeles federal court. 

The lawsuit alleged McDonald’s discriminated against Black-owned media by relegating Allen’s networks, including The Weather Channel, to a smaller “African American tier” advertising budget, limiting their access to the company’s $1.6 billion general market ad spend. 

Allen claimed this practice amounted to racial stereotyping, violating federal and California civil rights laws, and noted that McDonald’s spent less than $5 million annually on Black-owned media despite African Americans driving 40% of its U.S. sales.

The settlement also resolved a related $100 million lawsuit in Los Angeles Superior Court, where Allen accused McDonald’s of falsely pledging in 2021 to increase Black-owned media ad spending to 5% by 2024. McDonald’s denied wrongdoing but agreed to purchase ads from Allen’s companies at market value, aligned with its advertising strategy. 

Both parties issued statements emphasizing a renewed business relationship and McDonald’s commitment to inclusion, though financial terms and changes to ad practices were not disclosed.

Allen, whose media empire spans lifestyle channels and digital platforms like The Grio, has a history of settling similar lawsuits against Comcast, DirecTV, and Charter. The settlement drew mixed sentiments on X, with some praising Allen’s persistence and others questioning his motives.

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