Gray Spins Off 10 Stations To Allen Media For $380 Million
Gray Television today reached an agreement to divest some television stations currently owned by Quincy Media to Byron Allen’s Allen Media Broadcasting for $380 million in cash. Allen Media, which owns and operates local television stations in 12 markets, also owns 12 networks including The Weather Channel and the free streaming service Local Now. Allen Media Group was founded by Byron Allen in 1993.
Earlier this year, Gray reached an agreement to acquire Quincy for $925 million in cash. To facilitate regulatory approvals for this transaction, Gray agreed to sell to Allen Media the following television stations in seven markets currently owned by Quincy, each of which is in a market in which Gray also owns and operates a station:
KVOA (NBC) Tucson, Ariz. (DMA 64); WKOW (ABC) Madison, Wis. (DMA 81); WSIL-KPOB (ABC) Paducah, Ky.- Harrisburg, Ill. (DMA 84); KWWL (NBC) Cedar Rapids, Iowa (DMA 92); WXOW-WQOW (ABC) La Crosse-Eau Claire, Wis. (DMA 129); WAOW-WMOW (ABC) Wausau-Rhinelander, Wis. (DMA 136); and WREX (NBC) Rockford, Ill. (DMA 139).
Gray’s acquisition of Quincy and Gray’s sale of the foregoing Quincy stations to Allen Media will close simultaneously. As such, at no time will Gray own, control or operate any of the divestiture television stations. Gray said it expects to close these transactions following receipt of regulatory and other approvals in the third quarter of 2021.
Byron Allen, founder-chairman-CEO of Allen Media Group, said: “I truly appreciate Gray and Quincy, two of the best broadcast groups in the business, working with us to acquire and transfer these amazing assets. Over the past year-and-a-half, we’ve invested close to $1 billion to acquire best-in-class, top-tier, broadcast network affiliates. We plan to invest approximately $10 billion to acquire more ABC, CBS, NBC and Fox television stations over the next two years with the goal of being the largest broadcast television group in America. All of our media assets, including these broadcast television stations, will work in concert to amplify our free streaming service, Local Now.”
Gray’s Executive Chairman and CEO Hilton H. Howell, said: “We are thrilled to facilitate the transfer of these fine Quincy television stations to Byron Allen and Allen Media Group, who we are confident will continue the strong commitments to journalism and localism that have distinguished these stations under Quincy’s outstanding stewardship.