In May 2014, Gray Television closed on its purchase of the two facilities serving the Rapid City, S.D., market as its FOX and ABC affiliates.
This expansion in South Dakota came after Gray acquired the ABC affiliate in Sioux Falls, KSFY-13. Now, it’s creating a duopoly in Sioux Falls by buying a peacock in a deal brokered by Kalil & Co.
For a total price of $32.5 million, Red River Broadcasting Co. is selling KDLT-46 in Sioux Falls to Gray.
KDLT is the NBC affiliate for the market, ranked No. 110 by Nielsen.
The deal may formally give Gray a duopoly in Sioux Falls but actually creates a three-network cluster, as KSFY-13.2 is Sioux Falls’ home for The CW Network.
Gray noted its investment in South Dakota in announcing its purchase of KDLT, ahead of a Form 314 application filing with the Commission that had not been made May 2.
KSFY in fall 2016 moved into new facilities that includes additional space to operate a second television station’s local news and sales operations—a portend to the KDLT deal.
In Rapid City, a spring 2018 remodeling and expansion effort for the facilities of its Rapid City stations — KEVN-LP, the FOX affiliate, and ABC affiliate KOTA-TV — is being celebrated.
Gray anticipates that the KDLT buy will be immediately free cash flow accretive and expects closing to occur no later than the end of Q3.
Gray plans to finance the transaction with cash on hand.
Tucson-based Kalil & Co. represented the seller in this transaction.
