Gray Television is acquiring Meredith Corporation’s Local Media Group for $2.7 billion, which will make Gray the nation’s second-largest television broadcast group (passing Sinclair and still sitting behind Nexstar).
The transaction, which is expected to close in the fourth quarter of this year, will see Gray paying out $14.50 per share of Meredith in cash.
“The television station portfolios, company cultures, and commitments to localism of Gray and Meredith are highly complementary,” Gray’s Executive Chairman and CEO Hilton H. Howell said in a statement on Monday. “We are very excited to acquire Meredith’s excellent television stations, and we look forward to welcoming its employees into the Gray family. Moreover, Gray’s Board and shareholders are deeply appreciative of the tireless efforts of our team led by Kevin Latek and Jim Ryan on this transaction and our other recently announced significant transactions. Building on our successes throughout 2020 and just the first few months of 2021, Gray Television clearly has an even stronger and brighter future than ever!”
Here are the 17 stations (in 12 markets) that Gray is getting:
WGCL (CBS) / WPCH (Independent), Atlanta, Georgia (DMA 7)
KPHO (CBS) / KTVK (Independent), Phoenix, Arizona (DMA 11)
KPTV (FOX) / KPDX (MyNetwork), Portland, Oregon (DMA 21)
KMOV (CBS), St. Louis, Missouri (DMA 23)
WSMV (NBC), Nashville, Tennessee (DMA 29)
WFSB (CBS), Hartford-New Haven, Connecticut (DMA 32)
KCTV (CBS) / KSMO (MyNetwork), Kansas City, Missouri, (DMA 34)
WHNS (FOX), Greenville-Spartanburg, South Carolina (DMA 35)
KVVU (FOX), Las Vegas, Nevada (DMA 40)
WALA (FOX), Mobile, Alabama (DMA 57)
WNEM (CBS), Flint-Saginaw, Michigan (DMA 73)
WGGB (ABC & FOX) / WSHM-LD (CBS), Springfield, Massachusetts (DMA 116)
There is a conflict in the Flint-Saginaw market, but Gray will solve that by divesting its own ABC affiliate, WJRT-TV, to an independent third-party.
Following the transaction, Gray will exist in 113 markets, or 36% of the United States.
Gray and Meredith combine for a net revenue exceeding $3.1 billion on a blended 2019/2020 basis.
Gray foresees $55 million in synergies in Year 1 alone.
The transaction has been approved by the boards of directors of both companies. The transaction is subject to customary closing conditions and regulatory approvals.