Byron Allen Renews Pursuit of BET Media Group; Offers $3.5 Billion for BET, BET+, VH1
The billionaire owner of Allen Media Group pursued BET over the summer, but Paramount pulled the asset from the table.
The word “no” can serve as a goad for many, but especially for billionaires. It often turns out that the best way to get more money from a wealthy mogul is to pretend that you don’t want to sell them the thing that they’re interested in, and Paramount may have followed that strategy to the letter this year. New reports indicate that Byron Allen, founder of Allen Media Group, is in hot pursuit of BET Media Group once again after Paramount had toyed with the idea of selling to him earlier this year.
- Allen has reportedly offered Paramount $3.5 billion for BET Media Group, which includes BET and VH1.
- Reports of his renewed interest surfaced after the possibility of BET’s sale to a management-led investor group arose this week.
- Allen’s $3.5 billion offer is more than Paramount was offered for Showtime in early 2023.
What Has Spurred Allen’s Renewed Interest in BET?
Allen was one of the interested parties when Paramount put BET up for sale the first time around way back in March. No details emerged at the time regarding how much Allen bid at the time, but Paramount eventually pulled BET Media Group — which encompasses BET, VH1, and BET+ — off the table in August after not receiving what it considered an acceptable bid.
There were essentially no updates on the process until earlier this week when a report arose that Paramount had held discussions with BET chief executive Scott Mills and CC Capital Partners head Chinh Chu about selling BET to their investor group. The two sides had discussed a sale price of under $2 billion, but it wasn’t immediately clear if the talks included all of BET Media Group, or just BET itself.
Now, Allen’s bid has become public. It’s possible that someone connected to Allen made the details of his bid widely, in order to put pressure on Paramount to accept. BET was first acquired by Viacom (now Paramount Global) in 2001, for a price tag of $3 billion, so this would be a positive sale, not including any profits or losses sustained over the past two-plus decades.
Will Paramount Accept Allen’s Bid This Time?
There are plenty of variables to be worked out in any sale of BET, but Paramount might be wise to accept the offer from Allen. Although the $3.5 billion won’t be more in real dollars than the $3 billion Viacom paid for BET in 2001 thanks to inflation, it would allow Paramount to sell all of BET Media Group in a single offer, as opposed to trying to sell it off piecemeal.
It’s also worth noting that the $3.5 billion tender is more than Paramount was offered for Showtime when an unknown party tried to pry it away from its current owner in early 2023. Paramount was already planning to merge Showtime with its streaming platform Paramount+ when it received that offer, but there have been no similar combinations planned for BET’s content.
The true X-factor here is the potential merger of Paramount with Warner Bros. Discovery. That deal could lead to Paramount divesting itself of all assets it considers non-essential, or it could mean that BET stays put until the merger is complete and the combined management teams can figure out the best path forward for BET Media Group.
In any event, it appears that Byron Allen is quite serious about wanting to acquire BET. His $3.5 billion offer is very publicly on the table, and now the ball is in Paramount’s court.
BET+
BET+ is an online streaming service from BET Networks, launched as a joint venture with Tyler Perry Studios. As one of the largest online subscription video-on-demand services focused on the Black audience and lovers of Black culture, BET+ features more than 1,000 hours of premium content including new, exclusive programming, iconic TV series, movie favorites, as well as documentaries, and specials from BET Networks. BET+ offers original programming from Tyler Perry, including his plays, series, and box office hits.