Byron Allen Eyes To Acquire Tegna In $8B Deal

Byron Allen, the 1980s comedian-turned-media-mogul who owns the Weather Channel, aims to acquire Tegna Inc TGNA in an $8 billion deal, New York Post reports.
Tegna, formerly owned by Gannett Co Inc GCI, is a chain of 64 TV and radio stations that span more than 50 markets across the U.S.
Recently, 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 launch given the clout of Fox's news and sports channels, and the Weather Channel is in its crosshairs.
The deal could significantly boost Allen Media Group, which has amassed 33 local TV network affiliate stations.
Allen could gain leverage to sell cable companies his other nine fledgling networks, including Pets.TV, Comedy.TV, Recipe.TV and Cars.TV.
Recently, hedge fund Standard General collaborated with Apollo Global Management Inc APO to offer $22 a share for Tegna, implying a 12.4% premium.
Allen's Weather Channel's business also took a hit due to the pandemic as the TV advertising dried up, leading to piling debt load.
Recently, Allen discussed alliances on a last-minute bid for Tegna with Oaktree Capital Management, Fortress Investment Group, and Ares Management.
Allen's co-investors are pitching for a significant stake in Tegna in return for assuming most of the risky equity capital.
However, Allen wants to maintain almost complete control.
Surprisingly, Allen drew a hefty compensation package from his company despite his company's dwindling prospects and kept splurging on himself.
Price Action: TGNA shares traded higher by 1.53% at $19.96 on the last check Monday.

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