Gray TV to Buy Raycom in $3.65 Billion Deal

Gray TV to Buy Raycom in $3.65 Billion Deal

Television station proprietor

Gray Television

GTN 10.16%

is shopping for fellow station proprietor Raycom Media Inc. in a $three.65 billion deal that they are saying will create an organization with the third-most variety of stations in the nation.

The transfer comes amid consolidation in the TV business as station house owners look to improve their leverage with each broadcast networks, who provide a lot of their programming, and pay T.V. distributors, who carry their channels.

The business can be grappling with growing numbers of wire cutters, specifically viewers who’re ending cable TV subscriptions and as an alternative are watching on-line movies and utilizing streaming companies.

Also driving deal discussions in the business is

Sinclair Broadcast Group

pending acquisition of

Tribune Media

, which might create a number one station proprietor that will attain 62% of U.S. TV households.

Gray is shopping for Raycom for $three.65 billion in complete proceeds, together with $2.85 billion in money, $650 million in most popular inventory and 11.5 million shares of Gray inventory, valued at $147.2 million Friday. In pre-market buying and selling, shares of Gray rose 22%. Raycom is employee-owned.

The mixed firm will personal 142 tv stations in 92 U.S. markets

Gray shareholders can have 89% of the financial possession of the corporate following the deal. The mixed annual web income of each corporations, averaged over a two-year foundation, would have been about $2 billion.

In a transfer to ease regulatory approval, Gray will promote tv stations in all 9 of the markets the place each corporations function stations.

Raycom Chief Executive Pat LaPlatney is about to turn into Gray’s president and co-chief government.  Gray Chief Executive and Chairman

Hilton Howell

will turn into government chairman and co-chief government of the mixed firm.

Raycom has additionally began a course of to promote or spin off its neighborhood newspapers division, Community Newspaper Holdings Inc., which owns over 100 titles in 23 states, in addition to PureCars, a digital advert platform for the automotive business.

Write to Austen Hufford at [email protected]

Write to Austen Hufford at [email protected]

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