Third Black-owned company emerges as suitor for BET
When the cable giant Viacom bought Black Entertainment Television at the turn of the millennium for $2.34 billion, it made Robert L. Johnson, BET's founder, the first Black billionaire in the United States.
Since then, the fortunes of cable TV have waned. Viewers have abandoned traditional television in droves, and Blackowned media organizations in the United States, which were already scarce, have continued to dwindle.
But in recent days, Paramount — as Viacom is now known — has begun to explore selling a major stake in BET and its sister network, VH1, attracting entrepreneurs who would return the network to Black ownership. Tyler Perry, the actor and director who created the popular “Madea” franchise, has expressed interest in a bid, as has Byron Allen, who owns the Weather Channel.
Now, a third suitor has emerged, according to three people with knowledge of the sale process. Group Black, a media company in Miami run by Black executives, has expressed interest in a bid with CVC Capital Partners, a private-equity firm based in Luxembourg with more than $100 billion under management.
Talks to sell BET are still in their early stages, and Paramount may ultimately decide not to sell ownership of MTV or VH1 to any of the companies. Paramount declined to comment for this article. The company's CEO, Bob Bakish, has said that the company will not discuss sensitive deal-making details publicly.
Each known suitor for BET brings different strengths. Perry is a boldface name with a track record of producing popular TV shows and movies for BET. Allen has experience operating traditional TV networks, and he could bundle them with his existing channels, which include Comedy.tv and Pets.tv.
Group Black has connections with potential advertisers. Over the last two years, the company struck agreements with agencies to spend more than $500 million in advertising on its properties, according to two people with knowledge of the deals. The ad contracts are contingent on Group Black finding a suitable media partner; it recently submitted a bid to acquire Vice.