As the cable TV industry faces crisis, BET is attracting entrepreneurs looking to return the network to Black ownership. These moguls include Tyler Perry, Byron Allen, and Dave Portnoy. But the new owners would face a number of challenges. Among them is the cost of user acquisition, which can be huge.
Founded In 1980
Founded in 1980, BET or Black Entertainment Television, is the first television network dedicated to serving the African American audience. Initially, the company was launched with a $15,000 loan from founder Robert L. Johnson and a $500,000 investment from media executive John Malone. Originally broadcasting for just two hours a week, the network expanded to include music videos, reruns of popular television shows, and sports events.
In 1991, the company became the first black-controlled public company to list on the New York Stock Exchange. In the 1990s, the company diversified into radio, restaurants, and magazines, including Young Sisters and Brothers magazine. Several of these ventures failed, but BET continued to expand.
In 1998, unhappy with the stock’s sluggish performance, Johnson bought out other shareholders and took بت کمپانی private again. In 2001, the company was sold to Viacom for $3 billion. The sale drew criticism from some black media executives, who saw it as a loss of diversity.
Founded By Robert L. Johnson
After gaining experience as a lobbyist for the National Cable and Telecommunications Association, Robert L. Johnson borrowed money to start a cable television network that would serve the African American market. He named the company BET, and it became profitable within five years. It was the first black-controlled public company to list on the New York Stock Exchange.
The goal was to attract advertisers who would target the black consumer market, a group of people known for being fiercely brand loyal. Initially, BET offered music videos and shows that targeted a young audience, but the programming expanded to include talk shows and political and issue-oriented programs.
Johnson later founded RLJ Companies, which has investments in media, sports, gaming and real estate. He also co-founded BET and serves as its CEO. The company is headquartered in Washington, DC. Its flagship product is the BET cable television network and several other channels, including the pay-per-view channel Action and the teen lifestyle magazine YSB.
Founded By Viacom
Founded in 1980 by media entrepreneur Robert L. Johnson, BET was the first Black-owned company to be listed on the New York Stock Exchange. The company’s original programming included music videos, shows that targeted a young audience, and talk shows. The company also owned the BET Direct channel, which used infomercials to sell merchandise and products to its viewers, such as Color Code skin care products.
The channel became profitable in the 1990s and expanded its operations with a film division, publishing division, and website. Its revenue grew, and BET became one of the nation’s most successful minority-owned businesses.
In 2001, Johnson sold his majority stake in the company to Viacom for $3 billion, making him America’s first African American billionaire. He retained the company’s name, headquarters in Washington, D.C., and his position as chief executive officer. Viacom’s heft allowed BET to expand its distribution footprint and experiment with scripted programming. But it also competed with dozens of other networks for viewership and resources, a problem that intensified over the past decade as cord-cutting and collapsing ratings cut into profit margins.
Founded By Paramount
After a series of stops and starts, it appears that Paramount Global has renewed its effort to sell its stake in betcompany Media Group. The unit oversees TV channels and premium services aimed at Black audiences, including its namesake cable channel, streamer BET+, and VH1. The company has been weighing which assets to keep and which to sell in the face of declining linear TV viewership and the cratering pay TV landscape.
The latest bid to acquire BET was made by an investment group led by BET CEO Scott Mills and CC Capital Partners founder Chinh Chu. Sources told Bloomberg that the group is prepared to pay $1.6-1.7 billion for the network.
This is the same group that was ready to buy the company last year. However, the talks fell apart when Tyler Perry walked away from the deal, calling the sale process “disrespectful.” The mogul said the price was too high and that he wanted BET to be a Black-owned business.
More Words
As traditional TV viewership dwindles, a number of very famous, very rich businessmen have signaled an interest in buying BET. Tyler Perry is among them. The company oversees cable channels and premium services aimed at African Americans. It includes its namesake cable channel; VH1, a sibling network; the streaming service BET+; and production arm BET Studios.
