In a bidding war to make BET black-owned, Hollywood mogul Tyler Perry and L.A. media tycoon Byron Allen compete to purchase the Black Entertainment Television network, according to reports. The move comes amid a dramatic reshuffling in the media industry as legacy companies struggle to shift their focus away from building linear TV channels and into streaming.
A decade ago, a cable network change of hands could fetch a hefty $38 per sub and more than 21x cash flow (Earnings Before Interest, Depreciation, Taxes, and Amortization). Now the price is lower because there have been few buyers, and it’s more likely that a buyer would be a company that doesn’t have a direct interest in the asset.
Founded in 1980 by entrepreneur Robert Johnson, the BET network grew to include film and publishing divisions and music channels. The company was a significant player in the African American market and became one of the top cable networks in the country.
Then, in 2001, Viacom, now Paramount Global, bought the network for $3 billion. It then rebranded the Black programming division as VH1, which continues to offer various Black-themed series, including those produced by Perry.
Despite being sold to Paramount, the BET network remains an iconic brand within the Black community. Its programs have a strong reputation for featuring African-American actors, directors and comedians, and the most recognizable names in pop culture. However, it’s no longer able to attract the audience it once did.
