The television group that is arguably the least worked up about the incentive auction is also the only one that is doing any significant amount of M&A this year. This time, Gray has unique new deals and closing to report. Broker: Kalil & Co.
The deals feature ways to carry to major networks in one small market.
Strap into your seat and get your scorecard ready.
Wausau-Rhinelander: Gray has done a non-license deal with Davis Televison under which it will acquire certain assets of WFXS-TV, the local Fox affiliate. The station has been turned off, and the programming has migrated to Gray LPTV WZAW. Gray also owns CBS WSAW Wausau in the market. This is the deal Kalil worked on.
Laredo TX: Gray acquired non-license assets of CBS KVTV from Eagle Creek Television. KVTV has been shut down, and the programming has moved to Gray LPTV KYLX. Gray also owns NBC KGNS in the market.
Great Falls-Helena MT: In this one, Gray is the seller of NBC KBGF Great Falls and NBC/CW KTVH Helena. The buyer is Cordillera Communications.
Helena MT: Gray is donating KMTF-TV to Montana State University which will use it to bring local PBS service to the city for the first time.
Gray pegs the total price of the four sets of transactions at $20 million net, accounting for both money paid and received.
It also closed on its acquisitions of KOSA-TV in Odessa-Midland TX, KMVT-TV.KVST Twin Falls ID and WAGM-TV Presque Isle ME.
Gray pegs total net trading value of all of these transactions at $81.35 million, at a net multiple of about 6x.
RBR+TVBR observation: Even where television duopolies are legal, the powers that be do not like to see two full power stations operating in tandem with both are among the top four stations in the market.
But there is no restriction against operating two network affiliates when one of them is on a low power outlet of a digital side channel.
The only problem with this is that it an option generally available only in smaller markets with a dearth of broadcast sticks to begin with.
It is actually a boon to these markets, however, giving them access to high quality broadcast programming they would otherwise not be able to see. Gray happens to be one of the masters at building such combos.
