Justice Dept. OKs Gray-Schurz Transactions

Gray Television today said that it and Schurz Communications have reached an agreement with the U.S. Department of Justice that should enable the parties to complete Gray’s acquisition of the broadcast stations owned by Schurz and to complete the related divestures previously announced by Gray. 

Gray and Schurz have entered into a proposed consent decree with the DOJ that requires the divestiture of television stations in Wichita, Kan., and South Bend, Ind.

When Gray announced its acquisition of the Schurz broadcast stations on Sept. 14, and shortly thereafter when Gray and Schurz filed the requisite applications for consent to their transaction with the DOJ and the FCC, Gray agreed to divest KAKE, its ABC affiliate in Wichita, and Schurz’s WSBT, the CBS affiliate in South Bend, to facilitate prompt regulatory approvals for the Gray-Schurz transaction.

On Oct. 1, Gray announced that it had reached an agreement with Lockwood Broadcast Group to sell all of KAKE’s assets in exchange for the assets of Lockwood’s WBXX and $11.2 million in cash. WBXX is the CW affiliate in Knoxville, Tenn. (DMA 62), where Gray owns CBS affiliate WVLT. At the same time, Gray announced that it had reached agreements with Sinclair Broadcast Group to sell WSBT in exchange for Sinclair’s WLUC Marquette, Mich., whose channels serve as the NBC and Fox affiliates for the Marquette market (DMA 180).

On Nov. 2, Gray announced that it would transfer the Schurz radio stations in South Bend to Mid-West Family Broadcast Group; its radio stations in Lafayette to Neuhoff Communications; and its radio stations in Rapid City, S.D., to The HomeSlice Group. 

All of these transactions remain subject to approval by the FCC and other customary closing conditions. Gray said it anticipates closing the transactions in the first quarter of 2016.