Entertainment Studios continued to add to its broadcast portfolio Tuesday, agreeing to purchase 11 television stations from USA Television Holdings for $290 million.
The deal is another step in what has been an aggressive acquisition strategy by the independent producer and distributor founded and led by entrepreneur Byron Allen. In the past 18 months, Entertainment Studios has bought The Weather Channel for an estimated $300 million, acquired four TV stations from Bayou City Broadcasting for $165 million and partnered with Sinclair Broadcast Group on its purchase of 21 regional sports networks from the Walt Disney Co.
The most recent purchase involves properties in Alabama, Indiana, Oregon, California, Mississippi, Minnesota and Iowa and beefs up Allen’s Allen Media Broadcasting unit to 15 stations.
“I have known Byron Allen for decades and we are delighted that these stations will now be part of his dynamic company, and that Heartland management will continue to guide them,” said USA Television CEO Robert S. Prather, Jr. in a press release. “These stations are dedicated to their local communities and this transaction will enable them to become even stronger on both their broadcast and digital platforms.”
RBC Capital Markets acted as sole financial adviser to Allen Media Group, while Moelis & Co. was the sole financial adviser to USA TV.
"This is another milestone for our company, as we have now agreed to purchase our second broadcast network affiliate station group within the past three months, and continue to aggressively look for other opportunities to grow our global media company through strategic acquisitions," Allen said in a press release.