BOCA RATON, FLA. — Of the individuals who have cemented their place as contemporary African American media leaders, two have made waves for some big deal-making moves in the television industry.
One is still-known for his long-ago role on one of America’s first prime-time “reality” programs — NBC’s Real People. The other recently made headlines for scooping up two stations in Indianapolis that Nexstar Media Group needed to sell.
Now, Byron Allen and DuJuan McCoy have come together to allow McCoy to focus solely on his Hoosier State operation.
As confirmed to RBR+TVBR, McCoy’s Bayou City Broadcasting has agreed to sell its assets in both Evansville, Ind., and Lafayette, La., to Allen’s Allen Media Broadcasting.
The transaction will send to Allen the following properties:
- Dual CBS/FOX affiliate WEVV-44 in Evansville, Ind.
- FOX affiliate KADN-15 and NBC affiliate KLAF-LD 46 (simulcast on KADN-15.2) in Lafayette, La.
It is a stock sale transaction, valued at $165 million.
Further, McCoy acquired the Lafayette stations three years ago for $40 million, and in January 2015 snagged the Evansville stations for $26.8 million.
That represents a $98.2 million profit for McCoy, who is paying just $42.5 million to enter DMA No. 28.
That news arrived via a sunrise announcement made ahead of the 2019 NAB Show in Las Vegas, in which Nexstar revealed that is transferring control of the CW Network and MyNetworkTV affiliates serving Indianapolis — WISH-8 and WNDY-23 — to a newly formed entity led by McCoy under the name Circle City Broadcasting.
McCoy is a member of the NAB’s Television Board of Directors, and has been on the board since June 2012. He has also been on NABOB’s Board of Directors since December 2013, serves on the Broadcasters Foundation of America board, and completed the NAB Broadcast Leadership Program in 2008.
McCoy’s involvement in the Broadcast Leadership Program came following the December 2007 launch of Bayou City Broadcasting, for which he serves as owner and President/CEO. Bayou City is headquartered in Houston and acquired its first group of stations in January 2008, with the purchase of seven stations in West Texas from Sage Broadcasting.
This included FOX affiliates KIDY-TV in San Angelo, Tex., and KXVA-TV in Abilene, Tex. Bayou sold those stations to London Broadcasting Corp. in December 2012.
Then, in January 2015, dual CBS/FOX affiliate WEVV in Evansville, Ind., was acquired in a deal that saw Nexstar sell the former FOX affiliate after an originally crafted deal that would have let Nexstar operate WEVV via a Shared Services Agreement was nixed by the FCC.
Two years later, KADN-TV and KLAF-TV in Lafayette, La., were added, giving Bayou City the FOX, NBC and MyNetworkTV stations in that market. The seller? Nexstar, since its merger with Media General gave the company local CBS affiliate KLFY-TV.
Now, with mixed emotions — and a hefty paycheck — McCoy is entering the next chapter in media ownership.
“When I look back on how the dedicated staffs of both markets have grown these properties in all facets of the operation, including revenue, market share, local news production, and public service within these local communities, it reinforces to me the value of people in our business and it leaves me very encouraged about the future prospects of local television broadcasting,” he said.
McCoy also noted that the sale to Allen marks “a historic transaction in the annals of media transactions in our country, where one African-American owned company sells local broadcast Big 4 TV affiliates to another African-American owned company.”
McCoy added that this furthers the FCC’s goal of increasing diversity in broadcast ownership.
He acknowledged his forthcoming business activities in Indianapolis by noting, “By completing this transaction, it will allow me to pursue my other career goals and projects
that I have within our great business including, but not limited to, my recent purchase of WISH and WNDY in Indianapolis. I look forward to working with Byron Allen and his team in transitioning these great stations to his growing media company.”
Broker information was not yet publicly closed as of Noon Eastern on May 6; Dan Kirkpatrick, a Member of Fletcher Heald & Hildreth, served as the legal counsel in this transaction.
The transaction is projected to close upon FCC approval in June or July 2019.
ANOTHER ADDITION FOR ALLEN
For Allen, the buying simply continues.
In fact, on Friday it became known that Allen will become an equity and content partner in a newly formed indirect wholly owned subsidiary of Sinclair Broadcast Group and an indirect parent of Diamond Sports Group LLC.
That’s the entity that sees Sinclair snagging the equity interests in 21 Regional Sports Networks (RSNs) and Fox College Sports from The Walt Disney Co., which needed to sell them in order to complete its merger with Twenty-First Century Fox.
The deal is valued at $9.6 billion, “after adjusting for minority equity interests.”
That deal was done through Entertainment Studios Inc., for which Allen serves as Chairman/CEO.
Founded in 1993 and headquartered in Century City, Calif., Entertainment Studios owns PETS.TV, COMEDY.TV, RECIPE.TV, CARS.TV, ES.TV,
MYDESTINATION.TV, and JUSTICE CENTRAL.TV.
Entertainment Studios also produces, distributes, and sells advertising for 43 television programs, making it one of the largest independent producers/distributors of first-run syndicated television programming for broadcast television stations.
Allen is a ubiquitous presence at the NATPE Miami conference and expo in Miami Beach each January.
And, he tends to be media shy; he neither commented on the RSN plan nor the Bayou City acquisition.