How much does Byron Allen want to buy BET for?

Media tycoon Byron Allen has revived his bid to acquire BET Media Group from Paramount Global, increasing his offer to $3.5 billion. The founder and CEO of Allen Media Group emailed senior executives and the board at Paramount Global on Tuesday, proposing the higher sum for BET Media Group, which includes the BET cable channel, VH1, BET Studios, and streaming service BET+. This offer surpasses Allen’s earlier bid of $2.7 billion in 2023.

Representatives for Paramount Global and Allen Media Group declined to comment on the matter. Reports suggest that other potential buyers for BET Media Group include BET CEO Scott Mills, a 26-year veteran of the company, and Chinh Chu, a former executive at private-equity firm Blackstone who heads CC Capital Partners. They have reportedly discussed a price tag of under $2 billion.

In his email to Paramount executives, Allen expressed concern over the possibility of an internal sale at a below-market price, arguing that it would be a breach of fiduciary duty by the Paramount Global management team and board of directors. He emphasized the importance of securing the highest price for the stockholders, particularly to avoid providing a favorable deal to an insider at the expense of public shareholders.

Earlier this year, Paramount Global had explored the sale of a majority stake in BET Media Group, with Allen, Tyler Perry, and Sean “Diddy” Combs among the potential bidders. In August, Paramount halted the bidding process for BET, citing that a sale wouldn’t significantly reduce its balance sheet leverage.

The renewed interest in acquiring BET Media Group coincides with ongoing discussions between Warner Bros. Discovery and Paramount Global regarding a potential merger. Additionally, Shari Redstone, whose National Amusements holds a controlling stake in Paramount Global, has reportedly been in talks to sell her shares in NAI.

A successful deal for BET Media Group would significantly expand Byron Allen’s media empire. Allen Media Group, which owns 12 cable networks, including the Weather Channel, JusticeCentral.TV, Cars.TV, and Pets.TV, operates a theatrical movie distribution company and owns 28 broadcast stations affiliated with major networks. The company is also a major independent producer and distributor of first-run syndicated TV programming, boasting a portfolio of 73 television shows and employing nearly 2,300 people.