After nearly three years of legal back-and-forth and a looming federal trial, media mogul Byron Allen and McDonald’s have officially squashed their beef.
Allen, the CEO of Allen Media Group, which is home to The Weather Channel, TheGrio, and HBCU Go, has settled his $10 billion lawsuit against the fast food giant, accusing McDonald’s of racial discrimination in its advertising spending.
The terms of the settlement? Confidential. But both sides are walking away claiming victory and partnership.
“We are pleased that Mr. Allen has come to appreciate McDonald’s unwavering commitment to inclusion,” the company said in a joint statement, adding that they’re looking forward to a “mutually beneficial commercial arrangement.”
Translation: They’re back in business—literally.
Allen originally filed the lawsuit in 2021 through his Entertainment Studios and Weather Group divisions, arguing that McDonald’s had systematically excluded Black-owned media companies from its massive TV advertising budget.
Specifically, Allen took issue with McDonald’s practice of categorizing Black-targeted media under a smaller, separate “African American tier,” which he claimed left those outlets underfunded compared to the general market.
“During the course of this litigation, many of our preconceptions have been clarified,” Allen said. “We acknowledge McDonald’s commitment to investing in Black-owned media properties and increasing access to opportunity.”
That’s a much more collaborative tone than when the lawsuit was first filed, and for good reason. The trial was set to begin next month in Los Angeles after a judge denied McDonald’s motion to dismiss late last year. So this settlement effectively spares both sides a very public courtroom showdown.
Allen is no stranger to going toe-to-toe with corporate giants. He’s previously sued Comcast, Charter Communications, and DirecTV, settling each time, often after landmark rulings or high-stakes negotiations. In fact, his battle with Comcast even reached the U.S. Supreme Court.
What started with a self-hosted talk show has grown into a media empire that owns dozens of digital and cable networks, plus a fleet of broadcast TV stations. And with McDonald’s now off the legal menu, Allen’s focus appears to be shifting. He recently hired investment bank Moelis & Co. to help shop his 28 local TV stations for sale, signaling a new chapter for the media mogul.
As for McDonald’s? This settlement is yet another sign that major corporations are being held accountable for how—and with whom—they spend their ad dollars.
