ATLANTA, Aug. 20, 2018 /PRNewswire/ -- Gray
Television, Inc. ("Gray") (NYSE: GTN and GTN.A) announced
today that it has entered into agreements to sell television
stations in eight markets in which both it and Raycom Media, Inc.
("Raycom") currently own television stations. The
agreements are as follows:
- Lockwood Broadcasting, Inc. has agreed to purchase Fox
affiliates WTNZ in the Knoxville
market (DMA 61), WFXG in the Augusta market (DMA 112), WPGX in the
Panama City market (DMA 151) and WDFX in the Dothan market (DMA
173).
- The E.W. Scripps Company has agreed to purchase ABC affiliates
KXXV/KRHD in the Waco market (DMA
86) and WTXL in the Tallahassee market (DMA 108).
- TEGNA Inc. has agreed to purchase CBS affiliate WTOL in the
Toledo market (DMA 78) and NBC affiliate KWES in the Odessa-Midland market (DMA 144).
Last week, Gray announced that it had reached an agreement to
sell its CBS affiliate, WSWG, in the ninth of the nine Gray/Raycom
overlap markets, Albany, Georgia,
to Marquee Broadcasting, Inc. The combined purchase price for
all nine divestitures is $235.5
million, which exceeds Gray's internal projections for
divestiture proceeds.
By divesting television stations in each of the nine overlap
markets, Gray ensures that the Gray/Raycom combination will not
reduce competition in those local markets and otherwise complies
with regulatory requirements. Gray will not have any joint
sales, joint retransmission, shared services, or local marketing
arrangements with any divested station. Additionally, Gray
will not hold an option to repurchase any divested station, nor
will Gray finance or guarantee any purchaser's indebtedness.
In short, following consummation of the transactions, the
divested stations will operate independently of Gray and under the
full control of their new owners.
The proposed divestitures will close concurrently with the
closing of the Gray/Raycom transaction, which Gray anticipates will
occur following the receipt of regulatory and other approvals in
the fourth quarter of 2018. Wells Fargo Securities, LLC
served as financial advisor and Cooley LLP served as legal counsel
for Gray in connection with the divestiture process.
Gray owns and/or operates over 100 television stations across 57
television markets that collectively broadcast over 200 program
streams including over 100 channels affiliated with the CBS
Network, the NBC Network, the ABC Network and the FOX
Network. Our portfolio includes the number-one and/or
number-two ranked television station operations in essentially all
of our markets, which collectively cover approximately 10.4 percent
of total United States television
households. For further information, please visit
www.gray.tv.
View original content with
multimedia:http://www.prnewswire.com/news-releases/gray-completes-divestiture-sale-process-to-facilitate-transaction-with-raycom-300699762.html
SOURCE Gray Television