As anticipated, Gray Television closed on its previously announced acquisition of Meredith Corporation’s Local Media Group (“Meredith”) and its 17 television stations in 12 local markets for $16.99 per share in cash, or $2.8 billion in total enterprise value. Gray’s portfolio of television stations now serve 113 local markets reaching approximately 36 percent of U.S. television households.
In Michigan, Gray picks up Meredith’s WNEM-TV (Saginaw) after selling WJRT-TV (Flint) to Byron Allen’s Allen Media Group, LLC. That deal closed in September. Gray’s other Michigan stations include WILX-TV (Lansing) and WLUC-TV (Marquette).
With estimated combined historical basis net revenue exceeding $3.2 billion on a blended 2020/2021 basis, Gray is now the nation’s second largest television broadcaster in terms of revenues. In addition, with a new, larger portfolio including 79 markets with the top-rated television station and 101 markets with the first and/or second highest rated television station, Gray retains its position as the largest owner of top-rated local television stations and digital assets in the United States.
“Gray is a far stronger company today with the exciting and transformative addition of Meredith’s excellent television stations and its fine employees,” said Gray’s Executive Chairman and CEO Hilton H. Howell. “We are grateful to the numerous professionals at Gray, Meredith and their advisers who dedicated themselves over the past year to the successful completion of this transaction.”
The FCC approved the Gray acquisition on November 12, clearing the way for the December 1 closing.