After Jacksonville Jaguars owner Shad Khan invested more than $76 million into the network, a U.S. Bankruptcy judge approved the sale of the Black News Channel on July 20 to media mogul Byron Allen for $11 million.
Khan is the majority investor in the news channel, which launched in February 2020 but filed for Chapter 11 reorganization in March 2022 in U.S. Bankruptcy Court for the Northern District of Florida, Tallahassee Division.
Black News Channel LLC is headquartered in Tallahassee.
Court documents show an affiliate of Khan called Beatnik Investments LLC directly invested more than $76 million into the company starting in 2018. Khan also extended a personal guarantee to the network for a $7 million credit facility.
Allen Media Group said in a news release announcing the court approval that Khan invested more than $100 million into Black News Channel.
Khan’s representatives declined to comment on Allen Media’s announcement.
Allen Media’s business includes The Weather Channel and 11 other television networks, and 27 individual broadcast television stations.
“We are excited to have been selected to acquire the Black News Channel, which has approximately 300 million linear and digital subscribers,” CEO Byron Allen said in the news release.
“Allen Media Group will deliver a best-in-class network to serve the underserved African-American community and the advertisers who want to reach this extremely valuable audience,” he said.
Court documents show the Black News Channel had operating revenue of $7.8 million in 2021 but expenses of $42.7 million, resulting in large operating losses.
After unsuccessful efforts to find additional investors, liquidity became tight for the network in March, which forced the company to seek Chapter 11 protection.
Unable to meet payroll, the company had to lay off 233 of its 250 employees March 25 before filing for Chapter 11 on March 28.
Jacksonville attorneys Richard Thames and Bradley Markey, representing Black News Channel, filed a motion April 26 to put the company up for sale.
U.S. Bankruptcy Judge Karen Specie signed an order July 20 approving the sale agreement with Allen Media.