Byron Allen submits $10 billion bid for ABC, other Disney networks

By Christopher Palmeri

Byron Allen has submitted a $10 billion offer to Walt Disney Co. to acquire its ABC TV network, local stations, as well as the FX and National Geographic cable channels, according to a person familiar with his proposal.

The offer is preliminary and could change, said the person, who asked to not be identified. Allen is basing his offer on the assumption that the properties generated $1.25 billion in earnings before interest, taxes, depreciation and amortization over the past 12 months. If that number is lower or higher, Allen would change his proposed price, which is based on a multiple of eight times ebitda.

Allen would work with banks and private equity firms to finance an acquisition, the person said. He may sell the local TV stations he already owns that aren’t affiliated with ABC, so there wouldn’t be friction with other networks like CBS and NBC.

Also Read: Extreme weather turns up the heat on long-term investment in agriculture

A standup comic who branched into producing TV shows, Allen has become a media mogul, spending more than $1.3 billion in recent years to acquire assets such as the Weather Channel and a string of local stations from Honolulu to Tucson. 

His closely held Allen Media LLC already carries a lot of debt, however. And Allen has unsuccessfully thrown his hat in the ring other times to purchase media properties. His name has been associated recently with proposed acquisitions of TV station owner Tegna Inc. and the BET cable network.

Bloomberg reported earlier Thursday that Allen was interested in the ABC properties and that Nexstar Media Group Inc. has held exploratory talks with Disney about an acquisition of the network and its eight local stations. 

Also Read: Elon Musk's denial of Ukraine's Starlink request prompts senate probe

In a statement Thursday, Disney said that while it’s considering strategic options for its traditional TV networks, no decisions about a sale have been made.