Gray Media, Inc. and The E.W. Scripps Company have entered into agreements to swap television stations across five mid-sized and small markets, resulting in the creation of new duopolies for each group.  The local broadcasters anticipate these transactions will give them the market scale and depth to strengthen their financial durability, in turn allowing them to preserve and deepen public service to their communities with essential local news and sports programming.

The deal was announced this past Monday (7/7).

Among the markets affected is Lansing, where Gray Television will take ownership of Scripps' WSYM-TV (Fox).  Gray currently owns WILX-TV (NBC) in Lansing. In addition to WSYM, Gray will also acquire Scripps' KATC (ABC) in Lafayette, Louisiana. The acquisition of KATC will complement Gray’s strong presence in the Southeast, including all other markets in Louisiana.

Here in Michigan, in addition to WILX, Gray also owns WNEM-TV (CBS) in Saginaw and WLUC-TV (NBC/Fox) in Marquette.

“We are very pleased to be executing a successful set of station swaps with Scripps that brings great value to both companies,” said Gray President and Co-CEO Pat LaPlatney. “At Gray, due to the strategic nature of these two acquisitions and the benefits to our operations, we anticipate expanding the news staff and hours of live local newscasts on both stations soon after closing the acquisitions.”

Scripps will acquire Gray’s KKTV (CBS) in Colorado Springs, Colorado, where Scripps owns KOAA (NBC); KKCO (NBC) and low power station KJCT-LP (ABC) in Grand Junction, Colorado; and KMVT (CBS) and low power station KSVT-LD (Fox) in Twin Falls, Idaho, where Scripps owns low power station KSAW-LD (ABC). These acquisitions bolster Scripps’ already strong regional presence in the West, where it owns and operates television stations across Montana, Idaho, Colorado, Utah, Arizona, Nevada and California.

Following the transaction, Scripps in Michigan retains WXYZ/WMYD-TV (ABC/Independent) in Detroit and WXMI-TV (Fox) in Grand Rapids.

“These new stations will allow Scripps to expand upon our local sports and news strategies in key growth geographies for us,” said Scripps President and CEO Adam Symson. “The resulting efficiencies will allow us to further invest in our connection to our communities, offering even richer coverage of these neighborhoods and regions.”

The swap involves the even exchange of comparable assets. In particular, the consideration for each transaction is the performance of the other transaction. As a result, neither company will pay cash consideration to the other.

Gray and Scripps anticipate closing both sides of the swap simultaneously in the fourth quarter of this year following receipt of regulatory and other customary approvals. The regulatory approvals will require certain waivers of outdated local ownership restrictions that have uniquely restricted local broadcasters’ ability to compete in today’s dynamic and highly competitive media environment. The parties intend to work closely with regulators, employees and other stakeholders to obtain the requisite approvals and to facilitate the smooth transitions of these stations to new ownership.