The purchase of the NBC affiliate from Red River Broadcasting will add to Gray’s market presence; it already owns ABC-CW affiliate KSFY there.
Gray Television on Tuesday agreed to purchase NBC affiliate KDLT Sioux Falls, S.D. (DMA 110) from Red River Broadcasting Co. for $32.5 million in cash. The deal gives Gray a duopoly since it already owns KSFY, the market’s ABC and CW affiliate.
Gray said this transaction “continues Gray’s investment in South Dakota. In the fall of 2016, KSFY-TV moved into a new, technologically advanced facility in downtown Sioux Falls that includes additional space to operate a second television station’s local news and sales operations. This spring, Gray inaugurated a remodeled and expanded building at the foot of the Black Hills in Rapid City to bring new state of the art technology to its ABC and Fox affiliates in that market, KOTA-TV and KEVN-LP.”
The acquisition of KDLT is subject to FCC and other approvals. Gray said it anticipates that the acquisition will be immediately free cash flow accretive and will close in the second or third quarter of 2018. Gray plans to finance the transaction with cash on hand.
Kalil & Co. represented the seller.