Withers Broadcasting Co. is selling its CBS-Fox/CW duopoly to Gray for $26.5 million.
DMA 169
Gray Buying WDTV-WVFX Clarksburg, WV
Gray Television said Friday afternoon that it is buying WDTV (CBS) and WVFX (Fox/CW) in Clarksburg, W.Va. (DMA 169), for $26.5 million in cash from Withers Broadcasting Co.
For the past several years, Withers has owned and operated WDTV and WVFX as a legal duopoly under an FCC Failing Station Waiver, an arrangement that Gray said it expects to continue.
“WDTV-WVFX present a perfect addition to Gray’s existing cluster of top television stations serving Virginia, West Virginia, Kentucky and Tennessee,” said Kevin Latek, Gray’s chief legal and development officer. “As a result, this acquisition will allow increased collaboration in news, sales and community service across the entire region, which in turn should benefit all stakeholders — viewers, clients, employees and investors alike.”
Dana Withers, president of Withers Broadcasting, said: “The challenges facing family owned television stations led us to conclude that only a larger company can move WDTV-WVFX to the next level. Gray’s investments and leadership in this region make it the best possible owner for the stations, and we are excited for the opportunities Gray will bring to our employees and community.”
Gray said the transaction purchase price represents a multiple of approximately 5.9 times a blended average of the stations’ 2015-2016 expected broadcast cash flow adjusted for expected synergies. As such, Gray said it anticipates that the acquisition will be immediately free cash flow accretive. Gray added that it plans to finance the transaction with cash on hand.
The transaction is subject to regulatory and other approvals. Gray said it plans to close the acquisition in multiple steps between June 2016 and a date after the conclusion of the pending FCC spectrum auction, subject to certain contingencies and possible price adjustments.
BRAND CONNECTIONS
Larry Patrick of Patrick Communications represented the seller.
Comments (3)
Patrick Burns says:
May 13, 2016 at 5:10 pm
Withers can be congratulated. With entire West Virginia economy being challenged this is a great price. I hope with coal scrubbers and MIT type driven research based emission controls that WV rebounds. But this could be a money pit if the economy in W V tanks even more !! We will see, either way the Mountaineers play great football !!!!
John Avellino says:
May 16, 2016 at 12:21 pm
I COULDN’T of Said it better myself:
“WDTV-WVFX present a perfect addition to Gray’s existing cluster of top television stations serving Virginia, West Virginia, Kentucky and Tennessee,” said Kevin Latek, Gray’s chief legal and development officer. “As a result, this acquisition will allow increased collaboration in news, sales and community service across the entire region, which in turn should benefit all stakeholders – viewers, clients, employees and investors alike.”
Dana drives a hard bargain great business acument
John Avellino says:
May 16, 2016 at 12:25 pm
Gray is On the Rise and all these other station groups better beware because We are Gunning For you. This deal is just another feather in a Hat that’s gonna get a lot more feathers……wait for it….Wait for it….