Byron Allen may have set out on his biggest purchase yet.
Bloomberg’s source disclosed that Allen’s offer is preliminary and subject to change. Whether he will follow through with the $10 billion bid is said to be contingent on multiple factors.
“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,” Bloomberg reported. “If that number is lower or higher, Allen would change his proposed price, which is based on a multiple of eight times ebitda.”
In order to make the offer happen, the outlet’s source claims that Allen has the plan to work with banks and private equity firms for the funding. Additionally, he could potentially sell his non-ABC affiliated local TV stations to ensure there’s no tension with the likes of CBS and NBC, or other networks.
However, as of this writing, Disney stated that it hasn’t officially decided on the sale of its properties.
Prior to Allen’s reported Disney offer, he closed on another media deal. As previously reported by AFROTECH, the Allen Media Group teamed up with HBCU GO for a 10-year media rights partnership with the Central Intercollegiate Athletic Conference (CIAA). The long-term goal behind the partnership is to broadcast all CIAA team sports on HBCU GO and Allen Media Group platforms.
“We’re proud to celebrate our 10-year partnership with the CIAA to amplify all of their team sports to our audiences,” Allen shared in a statement. “The rich heritage and legacy of the CIAA and the phenomenal athletes that have participated in the conference since its inception are a natural fit for HBCU GO.”