Byron Allen, a frequent media bidder, faces criticism for late payments to ABC, CBS, and NBC.

• CNBC has learned that Byron Allen's broadcast stations have frequently been late in making payments to network owners, causing frustration among media allies and straining relationships with potential partners.
• According to sources, the total payments to ABC, CBS, and NBC have been in the tens of millions of dollars annually, and the level of tardiness has progressively worsened.
• In contrast to his proposed bids for multibillion-dollar media assets, Allen's unpaid debts totaling millions of dollars are overdue.

Byron Allen, the media mogul who has expressed interest in buying various media assets for billions of dollars, has been consistently late in making payments to network owners, angering media allies and creating distance between Allen and his would-be deal partners, according to CNBC.

According to sources, Allen Media Group's stations have been as much as 90 days behind on payments to networks such as ABC, CBS, and NBC, totaling tens of millions of dollars annually. The lateness has worsened over time, said the sources, who requested anonymity due to the confidential nature of the financial transactions.

The Allen Media Group owns broadcast stations in over 20 markets across ABC, CBS, and NBC affiliates, as stated on their website.

Despite agreeing to payment plans, ABC, CBS, and NBC have become increasingly frustrated with consistently late payments from Allen, according to sources. It is rare for local broadcasters to pay hefty fees to larger network owners for carrying their brand and content, particularly live sports like the NFL and postseason games across leagues, the sources added.

It's unclear why Allen Media Group has been repeatedly late with payments.

This week, after CNBC contacted Allen Media for comment, the group settled the outstanding fees, according to sources. The exact payment amount is not yet known.

Broadcast station group executives have advocated for a change in the structure where networks collect fees from local affiliates, as the funds to pay often come from retransmission fees that cable TV operators pay to the stations. This can create a situation where money may need to go out before it comes in. With the acceleration of cord cutting and the movement of more content over to streaming platforms, this structure has become increasingly problematic.

Recent reports indicate that various divisions of Allen's company, including stations in different regions such as the Midwest, Southeast, West Coast, and Hawaii, have undergone layoffs. It is said that another round of job cuts is expected to occur at the end of August.

Allen Media Group, founded 31 years ago in a dining room, is now a leading and rapidly expanding privately-held media company that is entirely Black-owned. Despite requests for information about the story, representatives for Allen Media Group refused to provide specifics, only stating that the company has grown significantly since its inception.

We, like most media companies and private equity firms, assess numerous acquisition opportunities. Over the past few years, we have completed over $1 billion in acquisitions with the support of the capital markets. Despite our 31-year history, Allen Media Group remains strong and continues to manage our partner relationships with caution.

Representatives for ABC, CBS and NBC declined to comment on the matter.

Allen's business

Despite his frequent multibillion-dollar bids for media assets, Allen's history of late payments of tens of millions of dollars has caused investment bankers and financial institutions to lose faith in him as a serious buyer for large assets, according to three investment bankers and a person close to the matter.

Allen has recently shown interest in M&A deals, including a $30 billion bid for Paramount Global, a $10 billion offer for Disney networks, and a resubmitted $3.5 billion offer for BET Media Group.

A recent report suggests that Allen is considering making another bid for Paramount before the "go-shop" period with Skydance ends later this month.

Recently, Allen has openly discussed his aspirations to expand his media empire, despite his past unsuccessful bids. In an interview with CNBC in January, he revealed that some owners had declined to sell, causing recent acquisition attempts to fail.

""Allen stated in September that we have several banks supporting us and standing with us, even private equity firms, regarding the potential deal for ABC and other Disney assets. He believes other assets will become available and we will eventually acquire them," according to CNBC."

Tegna has been reportedly offered $8.5 billion by Allen Media Group, which has a history of reposting public media reports about its interest in bidding on media properties.

Since 1993, Allen Media Group has been expanding its broadcast media empire, with the formation of Allen Media Group Broadcasting in 2019 and a series of smaller deals.

Besides The Weather Channel and traditional TV stations, Allen Media also owns a collection of small TV networks, including Pets.tv and Comedy.tv, as well as a Black news and entertainment network, TheGrio.

In April, Allen Media acquired seven stations from Gray for $380 million as part of the required divestitures for its acquisition of Quincy Media.

As most other stations, Allen's broadcast stations generate revenue through advertising and retransmission fees. However, broadcast station groups have been affected by the shift from traditional TV to streaming, with millions of people switching to streaming services.

Some of the largest broadcast station owners, including and , have predicted a rise in political advertising ahead of the presidential election, as documented in their recent earnings releases.

CNBC and NBC are both owned by NBCUniversal, which is a subsidiary of Comcast.