DMAS 134, 184, 191 & 206

Gray In 4 New Deals, Closes 3 Earlier Ones

It’s buying two stations in Wausau, Wis., and Laredo, Texas, and moving the programming to LPTVs it already owns in those markets. In Montana, it’s selling KBGF and KTVH to Cordillera Communications and donating KMTF to Montana State University.

Gray Television Inc. on Wednesday announced four new station deals and the closing of all three of its previously announced acquisitions. The new transactions are:

  • Wausau-Rhinelander, Wis. (DMA 134): Gray entered into an agreement with Davis Television LLC, to acquire certain non-license assets of WFXS, which had served as the market’s Fox affiliate. Earlier today, WFXS ceased operating. At that time, the parties closed the transaction, and Gray began broadcasting the program streams formerly transmitted by WFXS on Gray’s digital low-power WZAW in Wausau. Gray also owns and operates full-power WSAW in Wausau, which serves as the market’s CBS affiliate. Kalil & Co. was the exclusive broker for this transaction.
  • Laredo, Texas (DMA 184). Gray entered into an agreement with Eagle Creek Television to purchase certain non-license assets of KVTV, which had served as the market’s CBS affiliate. Earlier today, KVTV ceased operating. At that time, the parties closed the transaction, and Gray began broadcasting the program streams formerly transmitted by KVTV on Gray’s digital low-power KYLX. Gray also owns and operates full-power KGNS in Laredo, which serves as the market’s NBC affiliate.
  • Great Falls and Helena, Mont. (DMAs 191 and 206). Gray entered into an agreement with Cordillera Communications, to sell Gray’s KBGF, the NBC affiliate in Great Falls, and KTVH, the NBC and CW affiliate in Helena. Gray said it “believes that Cordillera, as the owner of top-rated stations across the state of Montana, will leverage its strong presence throughout ‘Big Sky Country’ to further improve the service and operations of KBGF and KTVH for the benefit of those stations’ local communities.”
  • Helena, Mont. (DMA 206). Gray owns KMTF in Helena, which simulcasts the CW channel broadcast by KTVH-D2. At the suggestion of Cordillera, Gray has agreed to donate KMTF to Montana State University. This donation will allow MSU to operate a full-power PBS station in the state’s capital for the first time in the history of the statewide PBS network that MSU operates.

Earlier today, Gray closed all three of its previously announced station transactions:

  • Odessa-Midland, Texas (DMA 146). Gray acquired KOSA, whose digital channels are affiliated with CBS and MNT.
  • Twin Falls, Idaho (DMA 192). Gray acquired KMVT, whose digital channels are affiliated with CBS and CW, as well as KSVT, whose digital channel is affiliated jointly with Fox and MNT.
  • Presque Isle, Maine (DMA 205). Gray acquired WAGM, whose digital channels are affiliated with CBS and Fox.

“Today, Gray continues to grow our footprint with even more outstanding, community-focused television stations, and we welcome their dedicated, excellent employees to the Gray corporate family,” said Hilton Howell, Gray’s president-CEO.

The net purchase price for the Wausau and Laredo transactions less the anticipated proceeds from the Montana dispositions is expected to be $20 million, which, the company said, represents a composite multiple of approximately 5.2 times a blended average of 2014-2015 anticipated pro forma broadcast cash flow including expected synergies.

Today, Gray closed the Wausau and Laredo transactions as well as the three previously announced transactions discussed above and funded all those transactions with cash on hand.  The Montana dispositions are subject to receipt of regulatory and other approvals, and we expect them to close in the third quarter of 2015. 

The purchase price, net of anticipated proceeds from dispositions, for all seven separate transactions that Gray has announced in 2015 is $81.35 million. This net purchase price represents a composite multiple of approximately 6 times blended 2014-2015 anticipated pro forma broadcast cash flow including expected synergies, according to Gray.

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Comments (11)

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Manuel Morales says:

July 1, 2015 at 8:18 pm

Gray = zero direction.

Joanne McDonald says:

July 1, 2015 at 9:10 pm

If Gray wanted to acquire one of Cordillera’s TV stations by giving KTVH and KBGF to Cordillera with Cordillera’s intention to broadcast on KRTV and KXLH digital multicast streams with KRTV-KXLH CBS programming on KRTV-KXLH DT1, KBGF-KTVH NBC programming on KRTV-KXLH DT2, and CW programming on KRTV-KXLH DT3 in Great Falls and on KTVH digital multicast stream with KRTV-KXLH CBS programming on KTVH-KBGF DT1, KBGF-KTVH NBC programming on KTVH-KBGF DT2, and CW programming on KTVH-KBGF DT3 in Helena. ==================================================
Meanwhile, Brian William Brady-Northwest Broadcasting may likely want to get even with Gray after Gray bought KNEX-LP to become KYLX-LD and the assets of KVTV with KVTV programming being broadcasted on KYLX-LD by vying to possibly compete with Sinclair Broadcast Group, Duane Lammers & Peter Markham-Granite Broadcasting/Silver Point Capital, Mark Nalbone-Wyomedia, Max Media, Cordillera/Evening Post, and SJL Broadcasting/Lilly to attempt on a pursuit on a bid on acquiring NTV(KHGI-KWNB)/KFXL FOX Nebraska from Harry J Pappas/Pappas Telecasting and Pappas Liquidating Trust under trustee David L Stapleton to thwart KLKN’s owner-parent Philip Lombardo-Citadel Communications attempt to acquire NTV/KFXL with Citadels intentions to operate NTV/KFXL in tandem with KLKN mainly for the benefit to keep NTV/KFXL operational in the future in the Lincoln-Grand Island-Hastings-Kearney TV DMA where Gray operates 10/11(KOLN-KGIN) in Lincoln and the ex-former KHAS turned (KSNB) NBC Nebraska in Hastings. Brady may likely been pursuing NTV/KFXL ever since Brady’s proposal to purchase NTV’s sister station KSWT in July 2013 with Brady’s intention on acquiring NTV/KFXL as leverage for negotiations for the FOX affiliation on the FOX stations Brady already operates and as leverage for retransmission consent negotiations for Brady’s stations on Time Warner Cable, Dish, DirecTV, and others.

    Wagner Pereira says:

    July 4, 2015 at 3:32 am

    Only a fool (like James Cieloha or D BP/Roger Thornhill ) would think that all stations are equal in value and can thus be moved around like Monopoly pieces. Scratch that, even a school kid knows in Monopoly Park Place is worth far more than Baltic Avenue.

miss Aisha al mana says:

July 2, 2015 at 1:01 pm

They basically converted KVTV to LP status which removes restrictions on how many signals they can opeate in Laredo

    Keith ONeal says:

    July 3, 2015 at 9:31 pm

    … and the signal can no longer reach into MEXICO!!!

Keith ONeal says:

July 3, 2015 at 12:01 am

The problem with moving programming from full power stations to low power stations in the same market means that Gray will have to apply to the FCC to build low power translators to replicate as much as possible the coverage the full power stations KVTV and WFXS has in their respective markets. That process will probably take YEARS to complete.

    Wagner Pereira says:

    July 4, 2015 at 3:17 am

    Guess you have been in a booze filled stupor looking at what the FCC is trying to accomplish next year.

    Keith ONeal says:

    July 4, 2015 at 9:00 pm

    … and how much reefer have you been smoking? It’s no wonder that other commentators call you Outsider because it’s obvious that you don’t know s**t! At least my comments make sense; yours don’t, fool!!!

    Wagner Pereira says:

    July 5, 2015 at 4:10 am

    Nice avoiding the issue, but again, you clearly are a drunken stupid idiot who is the outsider.

Sean Smith says:

July 3, 2015 at 10:16 am

James, where have you been? For months, I’ve missed your mindless dribble about something you know nothing about.
I’ve also been celebrating.

    Wagner Pereira says:

    July 4, 2015 at 3:15 am

    He’s been posting over at B&C where no one calls him on his BS.


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