Paramount Global is once again in discussions to sell the iconic Black Entertainment Television (BET) network to a management-led investor group. This development has reignited the debate over the network’s ownership and its significance in the entertainment industry. BET’s Chief Executive Officer, Scott Mills, and former Blackstone Inc. executive Chinh Chu are reportedly among the potential buyers. While the negotiations remain confidential, a price of just under $2 billion has been suggested.
Founded in 1980 by businessman Robert L. Johnson, BET quickly became a prominent platform for Black entertainment and culture. Over the years, it has developed close ties with some of the most successful African Americans in the entertainment industry. Notable investors in BET Studios include Kenya Barris and Rashida Jones, while Tyler Perry has a stake in the BET+ streaming service, Bloomberg reported.
The decision to sell BET is not a new one for Paramount Global, the parent company of CBS, MTV, and other prominent channels. Earlier this year, Paramount attempted to offload BET, along with the related channel VH1, but ultimately withdrew from the sale process due to unsatisfactory bids. This left the network’s future uncertain, prompting renewed interest from potential buyers.
Media mogul Byron Allen has been a vocal advocate for BET to be Black-owned. He initially offered $2.7 billion for BET Media Group, which includes the BET cable channel, VH1, BET Studios, and the BET+ streaming service. He recently increased his offer to a substantial $3.5 billion.
“You are pursuing an inside sale at a below-market price with management that will not yield the highest price for the stockholders,” Allen wrote to Paramount. “We believe it would be an egregious breach of fiduciary duty by the Paramount Global management team and board of directors if BET is sold for anything less than the highest price, particularly, in order to provide a sweetheart deal to an insider at the expense of public shareholders.”
Chu, who heads CC Capital Partners, has a track record of creating special-purpose acquisition companies to acquire businesses. IN 2022, Chu merged one with the photo archive Getty Images Holdings Inc.
Mills, the current CEO of BET, is another prominent figure in the discussions. He has been with the company for over 26 years.
Photo by John Guccione www.advergroup.com: https://www.pexels.com/photo/100-us-dollar-banknotes-3483098/BET logo