WEBVTT 00:00:00.000 --> 00:00:02.339 Welcome back to the Deep Dive. Today we're digging 00:00:02.339 --> 00:00:04.879 into the sources on a really fascinating figure 00:00:04.879 --> 00:00:08.019 in media, a guy whose journey is, well, pretty 00:00:08.019 --> 00:00:09.740 unique. Yeah, absolutely. We're talking about 00:00:09.740 --> 00:00:12.320 Byron Allen. Exactly. Byron Allen, businessman, 00:00:12.800 --> 00:00:16.679 producer, comedian, the list goes on. But what's 00:00:16.679 --> 00:00:18.679 really striking is that huge shift, you know? 00:00:19.070 --> 00:00:22.969 From stand -up comic to leading this massive 00:00:22.969 --> 00:00:25.269 media conglomerate. It really is almost like 00:00:25.269 --> 00:00:27.850 two different careers fused into one. He starts 00:00:27.850 --> 00:00:30.370 as Byron Allen, folks, born in 61, hitting the 00:00:30.370 --> 00:00:33.030 comedy clubs. But then, somewhere along the line, 00:00:33.109 --> 00:00:35.250 he pivots hard into becoming an owner. Yeah. 00:00:35.310 --> 00:00:37.109 An infrastructure guy. And that's Allen Media 00:00:37.109 --> 00:00:39.570 Group, or AMG, used to be entertainment studios. 00:00:39.689 --> 00:00:42.350 And it's not just one thing, is it? It's television 00:00:42.350 --> 00:00:44.409 production, broadcasting, film distribution, 00:00:44.750 --> 00:00:46.990 digital stuff. It's spread out. Hugely diverse 00:00:46.990 --> 00:00:49.960 portfolio. And the scale is just immense. I mean, 00:00:49.960 --> 00:00:52.159 our sources are saying that back in what, late 00:00:52.159 --> 00:00:55.320 2022, the company was valued north of four point 00:00:55.320 --> 00:00:57.560 five billion dollars. Four and a half billion. 00:00:57.700 --> 00:01:01.229 So, yeah, our mission today really is to. Unpack 00:01:01.229 --> 00:01:03.710 how that happens. How does a kid doing stand 00:01:03.710 --> 00:01:08.090 up at like 14 years old build an empire that 00:01:08.090 --> 00:01:11.010 big, big enough to be throwing around 14 billion 00:01:11.010 --> 00:01:13.769 dollar bids for giants like Paramount and even 00:01:13.769 --> 00:01:16.329 taking on huge corporations in court? It's a 00:01:16.329 --> 00:01:18.129 heck of a story. And I think, you know, you really 00:01:18.129 --> 00:01:20.109 have to go back to the beginning. His foundation 00:01:20.109 --> 00:01:23.390 wasn't just watching TV. He was practically living 00:01:23.390 --> 00:01:25.989 inside it, which takes us right into section 00:01:25.989 --> 00:01:29.180 two. The Comedy Foundation. Right. OK. So born 00:01:29.180 --> 00:01:32.739 in Detroit. But the key move seems to be in 68, 00:01:32.900 --> 00:01:35.260 right? Moves to L .A. with his mom, Carolyn Folks, 00:01:35.439 --> 00:01:37.439 after her divorce. Exactly. And this isn't just 00:01:37.439 --> 00:01:39.400 moving to L .A. It's where in L .A. and what 00:01:39.400 --> 00:01:42.670 his mom did. She got a job as a publicist. at 00:01:42.670 --> 00:01:45.810 NBC Studios in Burbank. Wow. Okay. So he's basically 00:01:45.810 --> 00:01:48.030 growing up on the lot. Pretty much. Imagine that. 00:01:48.069 --> 00:01:50.349 You're a kid. You're wandering around NBC. You're 00:01:50.349 --> 00:01:51.849 not just seeing the shows on TV. You're seeing 00:01:51.849 --> 00:01:53.829 the cameras, the sets, the meetings, the whole 00:01:53.829 --> 00:01:56.370 machinery. He got this behind -the -scenes master 00:01:56.370 --> 00:01:59.329 class in how TV actually gets made and sold way 00:01:59.329 --> 00:02:00.989 before most people even think about that stuff. 00:02:01.209 --> 00:02:02.890 That must have been an incredible advantage. 00:02:03.430 --> 00:02:05.290 And it seems like it sparked something pretty 00:02:05.290 --> 00:02:07.609 early. He starts doing stand -up routines at 00:02:07.609 --> 00:02:10.659 14. While still in school. Yeah, hitting the 00:02:10.659 --> 00:02:13.219 amateur nights in L .A. clubs, balancing it with 00:02:13.219 --> 00:02:16.979 Fairfax High, and later USC. He was clearly driven 00:02:16.979 --> 00:02:19.080 from a young age. And then comes this connection 00:02:19.080 --> 00:02:21.479 with Jimmy Walker. That sounds like a big break. 00:02:21.759 --> 00:02:24.319 Huge break. Walker, you know, from good times, 00:02:24.439 --> 00:02:27.639 sees his act and invites this 14 -year -old kid 00:02:27.639 --> 00:02:30.520 to join his comedy writing team. A 14 -year -old 00:02:30.520 --> 00:02:32.659 on a professional writing team. That's wild. 00:02:32.979 --> 00:02:35.680 It gets wilder. Guess who else was on that writing 00:02:35.680 --> 00:02:40.509 team? Jay Leno. David Letterman no way seriously 00:02:40.509 --> 00:02:43.590 Leno and Letterman seriously so imagine being 00:02:43.590 --> 00:02:46.370 14 15 years old and you're in a writers room 00:02:46.370 --> 00:02:48.669 with those guys plus Jimmy Walker you're not 00:02:48.669 --> 00:02:50.509 just learning jokes you're learning structure 00:02:50.509 --> 00:02:53.229 timing what hits an audience how to churn out 00:02:53.229 --> 00:02:55.590 material it's like comedy grad school before 00:02:55.590 --> 00:02:57.550 you even finish high school That's more than 00:02:57.550 --> 00:02:59.750 just joke writing. That's learning the business 00:02:59.750 --> 00:03:02.110 of content creation from the absolute ground 00:03:02.110 --> 00:03:05.129 up with future legends. Exactly. He's learning 00:03:05.129 --> 00:03:07.310 the architecture of it, the production pace, 00:03:07.509 --> 00:03:11.370 the need for quality, the audience, skills that 00:03:11.370 --> 00:03:12.930 are going to be crucial later when he starts 00:03:12.930 --> 00:03:15.250 his own production company. You learn fast in 00:03:15.250 --> 00:03:17.030 that kind of environment. And all that leads 00:03:17.030 --> 00:03:20.629 to The Tonight Show. Right. 1979. He's only 18. 00:03:20.909 --> 00:03:22.969 Makes his debut on The Tonight Show starring 00:03:22.969 --> 00:03:26.219 Johnny Carson. Youngest comedian ever to do that 00:03:26.219 --> 00:03:29.039 set. An incredible milestone for any comedian. 00:03:29.240 --> 00:03:31.419 Just huge. Absolutely. But here's what's really 00:03:31.419 --> 00:03:33.539 telling about Allen's mindset. Even back then, 00:03:33.699 --> 00:03:36.240 the sources say he didn't just see it as, hey, 00:03:36.340 --> 00:03:39.020 I'm performing on Carson. He saw it as a chance 00:03:39.020 --> 00:03:41.939 to learn. He specifically used that appearance 00:03:41.939 --> 00:03:44.539 to get deeper inside, understand the industry 00:03:44.539 --> 00:03:46.860 mechanics better, like a strategic reconnaissance 00:03:46.860 --> 00:03:48.719 mission. Always thinking beyond the performance 00:03:48.719 --> 00:03:52.000 itself. Always. And NBC clearly saw that potential 00:03:52.000 --> 00:03:54.849 too. Right after Carson, they cast him as a reporter 00:03:54.849 --> 00:03:57.930 on Real People, his first regular network gig. 00:03:58.129 --> 00:04:00.110 So he's building this really diverse resume early 00:04:00.110 --> 00:04:03.330 on. Totally. He does Real People. He co -writes 00:04:03.330 --> 00:04:06.270 and co -stars in a CBS movie, Case Closed, in 00:04:06.270 --> 00:04:09.210 88. He hosts his own syndicated show, The Byron 00:04:09.210 --> 00:04:13.009 Allen Show, 89 to 92. Plus, he's touring. Opening 00:04:13.009 --> 00:04:15.550 for huge music acts, Dolly Parton, Gladys Knight, 00:04:15.689 --> 00:04:18.629 Lionel Richie. Wow. That touring experience must 00:04:18.629 --> 00:04:21.110 have taught him a lot about logistics, different 00:04:21.110 --> 00:04:23.850 markets. Oh, for sure. Packaging content, dealing 00:04:23.850 --> 00:04:26.310 with venues, understanding audiences across the 00:04:26.310 --> 00:04:29.089 country. It gave him this complete like 360 view 00:04:29.089 --> 00:04:32.170 of how entertainment works from creation to delivery. 00:04:32.370 --> 00:04:34.750 OK, so he has this incredibly well -rounded foundation 00:04:34.750 --> 00:04:38.209 in performance, writing, hosting, even the logistics 00:04:38.209 --> 00:04:40.269 of touring. He understands the whole ecosystem. 00:04:40.470 --> 00:04:42.240 Precisely. And I think that perspective. Perspectives 00:04:42.240 --> 00:04:44.300 showed him where the real power lies, not just 00:04:44.300 --> 00:04:46.439 to being the talent, but in owning the stage, 00:04:46.519 --> 00:04:48.699 owning the distribution. Yeah. Which leads us 00:04:48.699 --> 00:04:51.100 right into section three, the business blueprint. 00:04:52.100 --> 00:04:55.740 The pivot. The big pivot. 1993, he sets up CF 00:04:55.740 --> 00:04:58.199 Entertainment. Yep. And the goal was really specific. 00:04:59.139 --> 00:05:02.519 Produce nonfiction TV, but do it incredibly cheap. 00:05:02.959 --> 00:05:05.120 He knew he couldn't compete on budget with the 00:05:05.120 --> 00:05:06.879 big networks, so he had to find a different way. 00:05:07.060 --> 00:05:09.500 And that first show, Entertainers with Byron 00:05:09.500 --> 00:05:11.279 Allen, that kind of set the template, didn't 00:05:11.279 --> 00:05:14.220 it? How did he manage celebrity interviews without 00:05:14.220 --> 00:05:17.680 a huge budget? This is where the scrappy genius 00:05:17.680 --> 00:05:20.379 comes in. He looked at how the system already 00:05:20.379 --> 00:05:24.120 worked. Film studios spend fortunes setting up 00:05:24.120 --> 00:05:26.980 press junkets in hotels for their big movie releases. 00:05:27.120 --> 00:05:29.339 Yeah, they fly in journalists, set up rooms with 00:05:29.339 --> 00:05:32.139 cameras, lighting. Exactly. Allen's idea was 00:05:32.139 --> 00:05:34.879 simple. Why build my own studio when they've 00:05:34.879 --> 00:05:37.519 already built one for me? He'd just show up at 00:05:37.519 --> 00:05:40.050 these junkets and film his interviews. Using 00:05:40.050 --> 00:05:41.930 the equipment the movie distributors had already 00:05:41.930 --> 00:05:44.089 set up for everyone else. Wait, seriously? He 00:05:44.089 --> 00:05:46.730 just used their stuff? Pretty much. He piggybacked 00:05:46.730 --> 00:05:49.490 on their infrastructure. No need to pay for fancy 00:05:49.490 --> 00:05:51.910 cameras, lighting rigs, sound gear, travel for 00:05:51.910 --> 00:05:55.069 crews. He massively slashed his production costs 00:05:55.069 --> 00:05:57.990 by leveraging what was already there. It was 00:05:57.990 --> 00:06:00.529 about access, not ownership at that stage. That 00:06:00.529 --> 00:06:03.069 is incredibly resourceful. Okay, so that solves 00:06:03.069 --> 00:06:05.509 the production cost. But getting it on air is 00:06:05.509 --> 00:06:07.550 the other half of the battle, maybe the harder 00:06:07.550 --> 00:06:11.649 half. How do he crack distribution? Ah, now this. 00:06:12.009 --> 00:06:15.670 This is the absolute core of the Allen Media 00:06:15.670 --> 00:06:18.730 Group empire, the bartered distribution model. 00:06:19.050 --> 00:06:21.670 Barter. Okay, explain that. Well, think about 00:06:21.670 --> 00:06:24.170 it. He doesn't have the cash to pay TV stations 00:06:24.170 --> 00:06:26.750 to air his show. That's how syndication usually 00:06:26.750 --> 00:06:29.180 worked. You pay a license fee. He couldn't afford 00:06:29.180 --> 00:06:32.160 that. So what did he do instead? He went to the 00:06:32.160 --> 00:06:35.079 local stations and said, here's my show, Entertainers 00:06:35.079 --> 00:06:37.879 with Byron Allen. Professionally produced, celebrity 00:06:37.879 --> 00:06:40.620 interviews. You can have it for free. For free? 00:06:40.680 --> 00:06:42.779 Why would a station give away airtime for free? 00:06:42.819 --> 00:06:45.079 What's the catch? No cash cost for the station. 00:06:45.240 --> 00:06:47.259 They get free programming to fill their schedule, 00:06:47.339 --> 00:06:49.759 which saves them money. The catch, or rather 00:06:49.759 --> 00:06:52.879 the deal, was in the advertising time. Ah, okay. 00:06:52.959 --> 00:06:55.459 So how did the ad time work? Instead of cash, 00:06:55.800 --> 00:06:57.800 Alan kept a portion of the advertising slots 00:06:57.800 --> 00:07:01.060 within his show, maybe, say, three or four minutes 00:07:01.060 --> 00:07:03.560 out of every half hour. The local station kept 00:07:03.560 --> 00:07:06.040 the rest of the ad time in that slot to sell 00:07:06.040 --> 00:07:08.399 locally. So the station gets free content and 00:07:08.399 --> 00:07:10.480 keeps some ad time to sell to local businesses. 00:07:10.879 --> 00:07:13.439 Right. And Alan gets something much more valuable 00:07:13.439 --> 00:07:15.920 in aggregate. He's not selling ads on one local 00:07:15.920 --> 00:07:17.920 station. He's collecting those three or four 00:07:17.920 --> 00:07:20.370 minutes from... Hundreds of stations all across 00:07:20.370 --> 00:07:23.230 the country. Ah, I see. He bundles it. Exactly. 00:07:23.430 --> 00:07:25.930 He bundles all those little bits of ad time into 00:07:25.930 --> 00:07:28.410 a national advertising package. Then he goes 00:07:28.410 --> 00:07:30.850 to the big guys, the Kochs, the Procter & Gamble's, 00:07:30.870 --> 00:07:33.670 the car companies and says, want to reach millions 00:07:33.670 --> 00:07:36.290 of viewers across the entire U .S., buy this 00:07:36.290 --> 00:07:39.189 package. He created a national network's worth 00:07:39.189 --> 00:07:41.610 of ad inventory without owning a single network, 00:07:41.810 --> 00:07:44.189 bypassing the traditional gatekeepers entirely. 00:07:44.879 --> 00:07:48.120 That's, wow, that's brilliant. Turning free content 00:07:48.120 --> 00:07:51.040 into national ad revenue. It's the engine. But, 00:07:51.120 --> 00:07:53.060 you know, it sounds smooth now looking back. 00:07:53.079 --> 00:07:55.439 The sources are really clear that it was incredibly 00:07:55.439 --> 00:07:57.660 tough going at the start. This wasn't an instant 00:07:57.660 --> 00:08:00.500 hit. Yeah, I can imagine building up that network 00:08:00.500 --> 00:08:02.500 of stations, convincing national advertisers. 00:08:02.860 --> 00:08:06.040 That takes time. A lot of time and effort. And 00:08:06.040 --> 00:08:08.680 the financial strain was immense. Sources talk 00:08:08.680 --> 00:08:11.100 about his house facing foreclosure multiple times. 00:08:11.259 --> 00:08:13.779 And get this, at one point, things were so tight. 00:08:14.060 --> 00:08:17.259 He lost his phone service. No phone? How do you 00:08:17.259 --> 00:08:19.879 run a national TV business without a phone? Apparently, 00:08:19.879 --> 00:08:22.579 he had to use a payphone. Conducting business, 00:08:22.860 --> 00:08:26.220 negotiating deals, pitching stations, from a 00:08:26.220 --> 00:08:29.740 payphone outside his office. That's insane. A 00:08:29.740 --> 00:08:32.240 payphone. That just paints such a picture of 00:08:32.240 --> 00:08:34.500 the struggle and the sheer determination involved. 00:08:34.879 --> 00:08:37.759 Absolutely. It really underscores how much credit 00:08:37.759 --> 00:08:40.240 it took to make that innovative model actually 00:08:40.240 --> 00:08:44.409 work. But it did work. Eventually. And that persistence 00:08:44.409 --> 00:08:48.450 paid off. By 2003, CF Entertainment becomes Entertainment 00:08:48.450 --> 00:08:50.809 Studios. Sounds like things were stabilizing. 00:08:50.990 --> 00:08:52.549 Yeah, the model was proven. The revenue streams 00:08:52.549 --> 00:08:55.629 were flowing. And by 2012, they were confident 00:08:55.629 --> 00:08:57.929 enough to start branching out beyond just nonfiction. 00:08:58.230 --> 00:09:01.009 They launched scripted sitcoms, like The First 00:09:01.009 --> 00:09:03.330 Family and Mr. Box Office. Showing the production 00:09:03.330 --> 00:09:05.409 and distribution engine he built was flexible 00:09:05.409 --> 00:09:07.289 enough for different kinds of content? Right. 00:09:07.370 --> 00:09:09.450 He'd built the machine, now it was time to feed 00:09:09.450 --> 00:09:12.000 it more, and then... Start buying other machines, 00:09:12.200 --> 00:09:15.480 which takes us right into section four, scaling 00:09:15.480 --> 00:09:18.159 the empire, the acquisition phase. OK, so the 00:09:18.159 --> 00:09:20.179 barter model is generating serious cash flow. 00:09:20.299 --> 00:09:22.960 Now he starts buying. What was the strategy here? 00:09:23.120 --> 00:09:25.019 It seems like it was about owning more of the 00:09:25.019 --> 00:09:28.159 pipeline, moving from just creating content and 00:09:28.159 --> 00:09:30.659 selling ads around it to owning the distribution 00:09:30.659 --> 00:09:33.440 channels themselves. Infrastructure. Makes sense. 00:09:33.620 --> 00:09:36.000 What were the key acquisitions? Well, a big early 00:09:36.000 --> 00:09:38.730 one was in 2015. They bought. Freestyle releasing, 00:09:38.889 --> 00:09:41.230 an independent film distributor. So getting into 00:09:41.230 --> 00:09:44.370 movies, vertical integration. Chexbook move. 00:09:44.629 --> 00:09:47.409 Now they could potentially produce a movie, market 00:09:47.409 --> 00:09:50.129 it using their existing TV reach, and distribute 00:09:50.129 --> 00:09:52.490 it to theaters themselves. Control more of the 00:09:52.490 --> 00:09:55.429 process, keep more of the revenue. Smart. Then 00:09:55.429 --> 00:09:59.370 what came next? 2016, they acquired Vigrio. Vigrio, 00:09:59.649 --> 00:10:02.629 the digital news platform focused on African 00:10:02.629 --> 00:10:05.190 -American audiences. Exactly. That was a strategic 00:10:05.190 --> 00:10:08.210 play on... Two fronts, really. One, it gave them 00:10:08.210 --> 00:10:10.190 a significant foothold in digital media, which 00:10:10.190 --> 00:10:12.549 was obviously exploding. Two, it gave them a 00:10:12.549 --> 00:10:14.730 powerful platform connecting with a specific, 00:10:14.870 --> 00:10:17.389 valuable demographic. Very attractive for advertisers. 00:10:17.750 --> 00:10:19.830 Okay, digital presence, targeted audience, makes 00:10:19.830 --> 00:10:21.889 sense. But then came the really big one, right? 00:10:21.970 --> 00:10:25.009 2018. Oh, yeah. The game changer. Acquiring the 00:10:25.009 --> 00:10:27.250 Weather Channel. The actual Weather Channel TV 00:10:27.250 --> 00:10:29.210 network and the whole parent company, the Weather 00:10:29.210 --> 00:10:32.769 Group. For $300 million, that felt huge. It was 00:10:32.769 --> 00:10:34.909 huge and strategically just brilliant. Think 00:10:34.909 --> 00:10:37.500 about it. Entertainment is hit or miss. Trends 00:10:37.500 --> 00:10:40.879 change. But weather. Weather is essential. Everyone 00:10:40.879 --> 00:10:44.139 needs it. Always. It's like a utility. The Weather 00:10:44.139 --> 00:10:46.600 Channel brought in steady, reliable income from 00:10:46.600 --> 00:10:48.860 carriage fees the money cable and satellite companies 00:10:48.860 --> 00:10:52.159 pay to carry the channel. That provides a stable 00:10:52.159 --> 00:10:54.820 financial base that's much less volatile than 00:10:54.820 --> 00:10:57.159 entertainment programming. Plus the digital side 00:10:57.159 --> 00:10:59.740 must be massive too, right? Weather .com? Absolutely 00:10:59.740 --> 00:11:02.620 enormous. Huge daily traffic to the website and 00:11:02.620 --> 00:11:05.580 apps. That meant vast digital advertising inventory 00:11:05.580 --> 00:11:08.460 and valuable data. Buying the Weather Channel 00:11:08.460 --> 00:11:10.740 wasn't just buying a TV network. It was buying 00:11:10.740 --> 00:11:13.500 a massive piece of essential national information 00:11:13.500 --> 00:11:16.840 infrastructure, both on TV and online. It really 00:11:16.840 --> 00:11:19.860 cemented AMG as a major player. So film distribution, 00:11:20.279 --> 00:11:23.039 digital news, a major cable network utility. 00:11:23.299 --> 00:11:25.820 Yeah. He didn't stop there. He started buying 00:11:25.820 --> 00:11:28.740 actual broadcast TV stations in various markets, 00:11:28.960 --> 00:11:31.340 owning the physical license, the spectrum. That 00:11:31.340 --> 00:11:33.480 gives you ultimate control in those local areas. 00:11:33.580 --> 00:11:36.019 Owning the towers, basically. Pretty much. And 00:11:36.019 --> 00:11:38.899 alongside that, he got involved in sports. He 00:11:38.899 --> 00:11:41.620 secured a big equity stake when Sinclair Broadcast 00:11:41.620 --> 00:11:44.279 Group. bought the Fox Sports Networks. That put 00:11:44.279 --> 00:11:47.919 AMG right into the middle of the very lucrative, 00:11:48.039 --> 00:11:50.919 very high stakes world of regional sports broadcasting. 00:11:51.220 --> 00:11:53.600 OK, let's piece this together. He's got production 00:11:53.600 --> 00:11:56.580 studios, a film distributor, digital news, a 00:11:56.580 --> 00:11:58.399 national cable staple like the Weather Channel, 00:11:58.679 --> 00:12:01.379 local TV stations, a piece of regional sports 00:12:01.379 --> 00:12:03.799 networks. It's a fully integrated media machine, 00:12:04.000 --> 00:12:06.659 content creation, multiple distribution platforms, 00:12:06.799 --> 00:12:09.720 spending theatrical, cable, broadcast and digital. 00:12:10.090 --> 00:12:12.190 all underpinned by that initial barter syndication 00:12:12.190 --> 00:12:14.690 engine that kept generating cash to fund the 00:12:14.690 --> 00:12:17.309 expansion. No wonder the sources pegged the company 00:12:17.309 --> 00:12:20.590 valuation at over $4 .5 billion by late 2022. 00:12:21.009 --> 00:12:22.970 You can see how all those pieces fit together 00:12:22.970 --> 00:12:25.570 to create that kind of value. And once you have 00:12:25.570 --> 00:12:27.970 that kind of scale, that kind of financial clout, 00:12:28.070 --> 00:12:31.490 well, your ambitions tend to get bigger. Which 00:12:31.490 --> 00:12:34.370 brings us neatly to Section 5, high -stakes bids 00:12:34.370 --> 00:12:37.070 and personal scale. Yeah, that $4 .5 billion 00:12:37.070 --> 00:12:39.230 valuation wasn't the endgame, was it? It seemed 00:12:39.230 --> 00:12:41.419 more like... a starting point for some really 00:12:41.419 --> 00:12:43.659 bold moves like trying to buy an nfl team in 00:12:43.659 --> 00:12:46.279 2022 right the denver broncos he put in a serious 00:12:46.279 --> 00:12:48.759 bid now ultimately he didn't win the team went 00:12:48.759 --> 00:12:51.899 for a record 4 .65 billion dollars to the walton 00:12:51.899 --> 00:12:54.220 group but just being a credible bidder at that 00:12:54.220 --> 00:12:56.700 level that sent a message about the kind of financial 00:12:56.700 --> 00:13:00.139 league allen was now playing in Owning an NFL 00:13:00.139 --> 00:13:03.519 team is like the ultimate billionaire status 00:13:03.519 --> 00:13:05.879 symbol and business asset in the U .S. And he 00:13:05.879 --> 00:13:07.779 wasn't just looking at sports. He went back to 00:13:07.779 --> 00:13:10.240 media acquisitions targeting Paramount. He did. 00:13:10.340 --> 00:13:13.100 In 2023, there was that reported bid around $3 00:13:13.100 --> 00:13:15.759 billion for Bet Media Group, which Paramount 00:13:15.759 --> 00:13:17.659 owned. That didn't go through. But he didn't 00:13:17.659 --> 00:13:19.899 give up on Paramount. Not at all. Just a few 00:13:19.899 --> 00:13:22.759 months later, early 2024, Allen Media Group. 00:13:23.049 --> 00:13:25.509 drops this bombshell, a reported offer of $14 00:13:25.509 --> 00:13:29.029 .3 billion to buy all of Paramount Global. $14 00:13:29.029 --> 00:13:32.070 .3 billion for the whole thing. I mean, just 00:13:32.070 --> 00:13:34.529 think about that trajectory again. The guy running 00:13:34.529 --> 00:13:36.950 deals from a payphone in the 90s is now making 00:13:36.950 --> 00:13:40.070 offers of that magnitude for a legacy Hollywood 00:13:40.070 --> 00:13:42.889 giant. It's honestly staggering. The speed of 00:13:42.889 --> 00:13:45.750 that ascent, the scale of the ambition, it shows 00:13:45.750 --> 00:13:48.490 the power of the business model he built. He 00:13:48.490 --> 00:13:50.850 went from being an outsider, finding cracks in 00:13:50.850 --> 00:13:53.190 the system, to someone trying to buy the entire 00:13:53.190 --> 00:13:55.710 system. And the industry and business world have 00:13:55.710 --> 00:13:57.830 definitely taken notice, right? He's collected 00:13:57.830 --> 00:14:00.169 some significant awards. Oh, yeah. Bloomberg 00:14:00.169 --> 00:14:03.129 50 in 2018. Goldman Sachs Builders and Innovators 00:14:03.129 --> 00:14:06.230 Summit honoree, same year. The Brandon Tartikoff 00:14:06.230 --> 00:14:08.629 Legacy Award in 2019. That's a big one in TV. 00:14:08.870 --> 00:14:11.070 And recognition for his impact on diversity in 00:14:11.070 --> 00:14:13.950 media, too. Definitely. In 2023, he received 00:14:13.950 --> 00:14:16.309 the first ever legendary honor from the African 00:14:16.309 --> 00:14:18.409 -American Student Union at Harvard Business School. 00:14:18.779 --> 00:14:21.279 That speaks volumes about his influence, not 00:14:21.279 --> 00:14:23.539 just financially, but in terms of representation 00:14:23.539 --> 00:14:25.860 and ownership in the industry. On the personal 00:14:25.860 --> 00:14:27.860 side, the source has mentioned his family married 00:14:27.860 --> 00:14:31.320 TV producer Jennifer Lucas in 2007, three kids, 00:14:31.419 --> 00:14:34.340 and some pretty impressive real estate. Yeah, 00:14:34.399 --> 00:14:37.220 the success translates into, well, a very comfortable 00:14:37.220 --> 00:14:40.320 lifestyle, residences in Aspen, Maui, L .A., 00:14:40.320 --> 00:14:42.720 New York, the kind of portfolio you'd expect 00:14:42.720 --> 00:14:45.179 at that level. And that Malibu mansion purchase 00:14:45.179 --> 00:14:48.919 in 2022 really made headlines. It did. a reported 00:14:48.919 --> 00:14:52.460 $100 million for a property previously owned 00:14:52.460 --> 00:14:55.220 by Tamar Augustoson. The sources highlighted 00:14:55.220 --> 00:14:57.519 it as the most expensive home ever purchased 00:14:57.519 --> 00:14:59.779 by an African -American in the U .S. at the time. 00:15:00.120 --> 00:15:02.759 It's a very tangible symbol of the sheer scale 00:15:02.759 --> 00:15:05.580 of wealth generated by AMG. But it's not just 00:15:05.580 --> 00:15:08.179 about building the empire and living large. He's 00:15:08.179 --> 00:15:10.799 also used his position to push for change, particularly 00:15:10.799 --> 00:15:13.700 around advertising and equity, which leads us 00:15:13.700 --> 00:15:16.419 to Section 6, the lawsuit for equity. Right. 00:15:16.700 --> 00:15:18.899 This was a big one. In 2021, Allen Media Group 00:15:18.899 --> 00:15:21.720 filed a $10 billion lawsuit against McDonald's. 00:15:21.740 --> 00:15:24.059 $10 billion against McDonald's. What was the 00:15:24.059 --> 00:15:26.980 core issue? The lawsuit alleged racial discrimination 00:15:26.980 --> 00:15:29.399 in how McDonald's allocated his advertising budget, 00:15:29.519 --> 00:15:31.860 specifically how it dealt with Black -owned media 00:15:31.860 --> 00:15:34.200 companies like Allen's. OK, discrimination in 00:15:34.200 --> 00:15:35.980 ad spending. How did they claim that worked? 00:15:36.159 --> 00:15:38.120 The suit alleged that McDonald's essentially 00:15:38.120 --> 00:15:41.240 operated a two -tiered system for its ad buys. 00:15:41.820 --> 00:15:45.059 There was the general market tier where the vast 00:15:45.059 --> 00:15:47.340 majority of the ad dollars went, hundreds of 00:15:47.340 --> 00:15:49.679 millions, for reaching broad audiences on major 00:15:49.679 --> 00:15:52.179 networks. And then the suit claimed there was 00:15:52.179 --> 00:15:54.879 a separate, distinct African -American tier. 00:15:55.530 --> 00:15:57.909 This tier was allegedly designated for media 00:15:57.909 --> 00:16:00.669 outlets specifically targeting black audiences. 00:16:00.850 --> 00:16:03.289 And the problem was the funding for that tier. 00:16:03.389 --> 00:16:05.970 Exactly. The lawsuit alleged that this African 00:16:05.970 --> 00:16:08.710 -American tier was given a tiny fraction of the 00:16:08.710 --> 00:16:11.070 overall budget, maybe only $5 million or $10 00:16:11.070 --> 00:16:13.710 million total, for all black -owned media to 00:16:13.710 --> 00:16:16.769 fight over. It created this separate, much smaller 00:16:16.769 --> 00:16:19.509 pool of money, regardless of the actual audience 00:16:19.509 --> 00:16:21.850 size or reach these black -owned platforms delivered. 00:16:22.220 --> 00:16:24.460 So the argument was that black owned media was 00:16:24.460 --> 00:16:27.200 structurally disadvantaged, kept out of the main, 00:16:27.279 --> 00:16:29.799 much larger pool of advertising revenue, which 00:16:29.799 --> 00:16:32.279 limited their ability to grow and compete. That 00:16:32.279 --> 00:16:35.440 was the core claim that this tier system effectively 00:16:35.440 --> 00:16:37.960 capped the financial potential of black media 00:16:37.960 --> 00:16:40.860 owners, preventing them from achieving the scale 00:16:40.860 --> 00:16:43.700 needed to compete globally purely because of 00:16:43.700 --> 00:16:47.259 this alleged budgetary segregation. Allen argued 00:16:47.259 --> 00:16:49.440 it suppressed the value and growth potential 00:16:49.440 --> 00:16:52.389 of businesses like his. That's a really powerful 00:16:52.389 --> 00:16:55.389 claim about systemic issues in corporate ad spending. 00:16:55.649 --> 00:16:57.509 It wasn't just about one contract. It was about 00:16:57.509 --> 00:17:00.210 the whole structure. Absolutely. It aimed at 00:17:00.210 --> 00:17:03.210 forcing a systemic change. The lawsuit got a 00:17:03.210 --> 00:17:05.069 lot of attention, sparked a lot of discussion 00:17:05.069 --> 00:17:07.410 about diversity in advertising budgets. And what 00:17:07.410 --> 00:17:09.769 was the outcome? The sources state the case was 00:17:09.769 --> 00:17:13.029 settled out of court in 2025. The specific terms 00:17:13.029 --> 00:17:16.140 weren't disclosed, which is common. But the fact 00:17:16.140 --> 00:17:18.900 that Allen, using the leverage of AMG, could 00:17:18.900 --> 00:17:20.819 bring such a massive lawsuit against a global 00:17:20.819 --> 00:17:22.980 giant like McDonald's and force a settlement 00:17:22.980 --> 00:17:25.559 that really demonstrates the power and influence 00:17:25.559 --> 00:17:28.059 he now wields. OK, so let's try to wrap this 00:17:28.059 --> 00:17:31.019 incredible journey up. We started with the kid 00:17:31.019 --> 00:17:33.259 comedian on Carson using it as a learning op. 00:17:33.380 --> 00:17:36.039 Then the lean years, the payphone negotiations, 00:17:36.319 --> 00:17:38.960 building that barter system from scratch. Right, 00:17:39.039 --> 00:17:41.380 through the strategic acquisitions, Freestyle, 00:17:41.559 --> 00:17:43.640 the Griot, the game -changing Weather Channel 00:17:43.640 --> 00:17:46.230 purchase. Broadcast stations, sports networks 00:17:46.230 --> 00:17:50.829 building this $4 .5 billion plus empire. Leading 00:17:50.829 --> 00:17:53.809 to audacious bids for NFL teams and Paramount 00:17:53.809 --> 00:17:56.329 and that landmark lawsuit against McDonald's. 00:17:56.430 --> 00:17:59.049 What stands out really is how the whole thing 00:17:59.049 --> 00:18:01.569 was built on bypassing the traditional gatekeepers. 00:18:01.869 --> 00:18:04.630 He didn't have the money for the usual way, so 00:18:04.630 --> 00:18:07.150 he invented a new way, the barter system giving 00:18:07.150 --> 00:18:09.750 away content to get ad time he could control 00:18:09.750 --> 00:18:12.759 nationally. That initial lack of capital forced 00:18:12.759 --> 00:18:14.859 the innovation that became the bedrock of everything 00:18:14.859 --> 00:18:17.140 else. Precisely. He solved his money problem 00:18:17.140 --> 00:18:19.339 by creating a more efficient distribution mechanism. 00:18:19.660 --> 00:18:22.000 And that mechanism generated the cash to eventually 00:18:22.000 --> 00:18:24.579 buy the traditional infrastructure anyway. So 00:18:24.579 --> 00:18:26.420 for you, the listener, maybe the final thought 00:18:26.420 --> 00:18:29.140 is this. That whole empire, the $14 billion bids, 00:18:29.180 --> 00:18:31.619 the $10 billion lawsuits, it all traces back 00:18:31.619 --> 00:18:33.720 to that clever necessity -driven barter model 00:18:33.720 --> 00:18:36.099 from the 90s. Yeah, it makes you wonder, doesn't 00:18:36.099 --> 00:18:38.400 it? Even today. With all the changes in media, 00:18:38.579 --> 00:18:41.960 how much does that kind of relentless, find another 00:18:41.960 --> 00:18:44.619 way, infrastructure -focused entrepreneurship 00:18:44.619 --> 00:18:47.119 still matter? Especially when you're starting 00:18:47.119 --> 00:18:49.400 from outside the established system. Owning the 00:18:49.400 --> 00:18:52.440 pipes is still powerful. Maybe more powerful 00:18:52.440 --> 00:18:55.869 than ever. Maybe so. From the payphone to paramount 00:18:55.869 --> 00:18:58.549 bids, it's quite a story about how necessity 00:18:58.549 --> 00:19:02.269 can, quite literally, invent billions. A fascinating 00:19:02.269 --> 00:19:04.509 deep dive. Thanks for breaking it all down. My 00:19:04.509 --> 00:19:06.450 pleasure. And thank you for joining us. We'll 00:19:06.450 --> 00:19:07.670 catch you on the next deep dive.