Byron Allen and McDonald’s Reach Resolution
June 13, 2025 — In a major breakthrough for media equity, Byron Allen’s Entertainment Studios Networks and The Weather Group announced a confidential settlement with McDonald’s, effectively resolving a high-stakes $10 billion racial discrimination lawsuit. The agreement brings to a close a lawsuit that had been scheduled to go to trial on July 15 in federal court in Los Angeles.
The Heart of the Lawsuit
The lawsuit, filed in 2021, accused McDonald’s of excluding Black‑owned media from fair access to national advertising budgets. Allen’s companies alleged McDonald’s relegated them to an “African American tier”—a de facto lower-budget segment—despite McDonald’s 2021 pledge to increase Black-owned media ad spending from 2% to 5% by 2024.
Allen’s empire of Black-owned media—which includes The Weather Channel, Cars.TV, Comedy.TV, and other niche networks—represents over 90% of Black-owned broadcast outlets.
What the Settlement Achieves
Though the terms remain confidential, the agreement confirms that McDonald’s will now purchase advertising airtime at market value from Allen’s companies, aligning with its broader advertising strategy.
Both sides have emphasized a constructive new chapter in their relationship:
- Allen’s statement: “We acknowledge McDonald’s commitment to investing in Black‑owned media properties… Our differences are behind us.”
- McDonald’s response: While denying any wrongdoing, the company affirmed it will now buy ads from Allen’s outlets “in a manner that aligns with its advertising strategy and commercial objectives.”
The settlement also resolves a parallel $100 million claim in Los Angeles Superior Court
The Broader Implications
- This resolution shines a light on the marketing practice of segmenting Black-owned entities into a “tier” with limited budgets.
- It reaffirms the importance of honoring public commitments to media diversity—McDonald’s 2021 pledge now carries real-world weight.
- The outcome may influence how advertisers structure media buys going forward, pushing for more fair and inclusive spending.
What This Means Going Forward
Byron Allen’s legal victories—including similar suits against Comcast, Charter, and DirecTV—are reshaping how Black-owned media are valued in the marketplace. This settlement positions his networks to benefit from mainstream ad budgets and could spark wider industry reform.
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