As RBR+TVBR reported Monday, Gray Television has agreed to shed eight stations it is acquiring from Raycom Media and one of its own properties in the nine overlap markets it will have should its just-announced $3.6 billion merger win regulatory approval.
How much will Gray pocket from the sale of these nine properties? Jefferies analyst John Janedis thinks he has a pretty good idea of what they’ll collect.
In a research note distributed early Tuesday (6/26), Janedis predicts that Gray could bring in $210 million from the sale of the stations.
Of the markets listed above, Knoxville is most certainly the most attractive, given the potential growth for the FOX affiliate under new ownership in a Top 75 market.
Also intriguing is the sale of WTOL-TV in Toledo.
According to Janedis, the nine stations earmarked for divestment represent close to $30 million in annual EBITDA and could attract seven times that in the sale.
Janedis also approves of the divestitures, rather than going the route of Sinclair Broadcast Group by seeking FCC regulatory waivers for duopolies in the overlap markets.
“Given how the [Sinclair/Tribune Media deal] has been held up following a prolonged negotiation over duopolies (among other issues), Gray Television appears set on avoiding the same fate,” Janedis said.
