Gray Television is buying Meredith’s Local Media Group, which includes 17 television stations in 12 markets, for $2.7 billion.
Stations involved in the deal, which is expected to close in the fourth quarter of 2021, include:
- 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)
Gray currently operates an ABC affiliate station in the Flint-Saginaw market, which it will sell prior to closing the transaction to meet regulatory approval.
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Gray claims that the deal will turn it into the U.S.’s second largest television broadcaster. The broadcast group’s reach will expand to 113 local markets reaching approximately 36% of U.S. television households. CEO Hilton Howell said his company is looking forward to welcoming Meredith’s Local Media Group employees into the Gray family.
Gray said it has identified an estimated $55 million in synergies annualized for the first full calendar year following the closing. The proposed transaction will avoid creating any new duopolies of local television stations and, by taking into effect the FCC’s UHF Discount, Gray’s pro forma portfolio of television stations will reach approximately 25% of U.S. television households, well below the FCC’s national audience cap of 39%.
After the acquisition closes, Meredith will spin off to its existing shareholders its National Media Group operating division, which owns several magazines – including People, Better Homes & Gardens and Real Simple – as well as digital and marketing assets.