It was a story that first gained attention on a gossip blog. Within minutes, the rumors were confirmed early Friday morning: Gray Media is on a buying spree, and after agreeing on August 1 to acquire Block Communications, Inc.’s television stations, it has struck an agreement to acquire Allen Media Group‘s broadcast TV properties in 10 markets.
The transaction involves properties across 10 markets, and Gray is acquiring them in a deal valued at $171 million.
The properties AMG is selling to Gray Media are comprised of the following broadcast stations:
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WAAY-TV in Huntsville, Ala.
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WSIL-TV in Paducah, Ky.-Cape Girardeau, Mo.-Harrisburg, Ill.
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WEVV-TV in Evansville, Ind.
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WFFT-TV in Fort Wayne, Ind.
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WCOV-TV in Montgomery, Ala.
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KADN-TV in Lafayette, La.
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WTVA-TV in Columbus, Ga.-Tupelo, Ms.
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WREX-TV in Rockford, Ill.
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WTHI-TV in Terre Haute, Ind.
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WLFI-TV in West Lafayette, Ind.
The purchase brings Gray into three new markets — Columbus-Tupelo, Mississippi; and Terre Haute and Lafayette, Indiana.
Gray expects the transaction to strengthen the company’s presence in the seven other markets by creating new duopolies that would allow Gray to preserve and deepen public service to their communities with expanded local news, local weather, and local sports programming.
Closing is anticipated for Q4, based on regulatory approval and waivers of current FCC local ownership rules.
Allen Media Group on June 5 revealed that it was placing certain stations on the market.
AMG operates in 22 markets including Honolulu, where it owns Hawaii’s ABC affiliate, KITV-4; and Tucson, where it owns and operates NBC affiliate KVOA-4, a former Cordillera Communications property. Also not included in the deal are KIMT-TV in Rochester, Minn.; KEZI-TV in Eugene-Springfield, Ore.; KDRV & KDKF in Ashland-Medford, Ore.; KHSL & KNVN in Chico-Redding, Calif.; WAOW-TV in Wausau, Wisc.; WQOW-TV in Eau Claire, Wisc.; WKOW-TV in Madison, Wisc.; WXOW-TV in La Crosse, Wisc.; KWWL-TV in Waterloo, Iowa; and WJRT-TV in Flint, Mich.
Moelis & Company LLC acted as exclusive financial adviser to Allen Media Group in this transaction.
