Gray Media Buys 10 Local TV Stations from Allen Media Group
Gray Media to Acquire Stations from Byron Allen’s Allen media Group for Undisclosed Sum
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Gray Media Group, a leading television broadcaster, has reached an agreement to acquire television stations from Allen Media Group (AMG), the media company owned by Byron Allen, as AMG looks to reduce it’s considerable debt. The deal, announced today, will see Gray expand its reach into new markets and solidify its position as a major player in local television. Financial terms of the transaction were not disclosed.
Expanding gray Media’s Footprint
The acquisition will add ten stations to Gray Media’s already extensive portfolio of television stations and digital assets, currently spanning 113 markets. Notably, the purchase allows Gray to enter three new markets: Columbus-Tupelo, Mississippi; Terre Haute, Indiana; and West Lafayette, indiana. In other markets, the deal will create duopolies – owning multiple stations in the same market – enabling Gray to offer more comprehensive local coverage.
“We are excited to expand our reach and serve new communities with quality local news, weather, and sports programming,” a Gray Media spokesperson stated.”The creation of these duopolies will allow us to deliver even greater public service to the areas we serve.”
Gray Media already boasts a strong presence in local broadcasting, with 78 top-rated television stations and a leading position in 99 markets, holding the first or second-highest ratings. The company also operates the largest Telemundo affiliate group, reaching 44 markets.
Stations Changing Hands
The stations being sold to Gray Media represent a mix of ABC, NBC, CBS, and Fox affiliates, ranging in market size from No. 75 to No. 189 in Designated market Area (DMA) rankings. Hear’s a breakdown of the stations included in the deal:
WAAY (ABC) – Huntsville, Ala. (DMA No. 75)
WSIL (ABC) – Paducah, Ky., Cape Girardeau, Mo., and Harrisburg, Ill. (DMA No. 90)
WEVV (CBS/Fox) – Evansville, Ind. (DMA No. 109)
WFFT (Fox) – Ft. Wayne, ind. (DMA No. 110)
WCOV (Fox) – Montgomery, Ala. (DMA No. 121)
KADN (Fox/NBC) - Lafayette, La. (DMA No.124)
WTVA (ABC/NBC) – Columbus-Tupelo, Miss. (DMA No. 134)
WREX (NBC) – Rockford, Ill. (DMA No. 137)
WTHI (CBS/Fox) – Terre Haute, Ind. (DMA no. 159)
WLFI (CBS) - West Lafayette, Ind. (DMA No. 189)
Allen Media Group Restructuring
The sale of these stations is part of a broader strategy by Allen Media Group to reduce its significant debt load. Byron Allen, the founder, chairman, and CEO of AMG, has been actively seeking ways to streamline the company’s operations and improve its financial position.
In June, AMG engaged Moelis & Co., a leading investment bank, to explore strategic alternatives for its local TV station portfolio, which includes 28 stations across 21 markets. Moelis & Co.is tasked with evaluating options to maximize the value of AMG’s assets and position the company for long-term success.
The past year has seen AMG implement cost-cutting measures, including layoffs. The company also experimented with centralizing local weather forecasts through its ownership of The Weather Channel, a move that ultimately proved unsuccessful. These adjustments reflect the challenging economic environment facing the media industry and the need for AMG to adapt to changing market conditions.
Deal Completion Expected in Q4
Gray Media and Allen Media Group anticipate the transaction will close in the fourth quarter of 2024, subject to regulatory approvals and customary closing conditions. This acquisition marks a significant development in the local television landscape, strengthening gray Media’s position while allowing Allen Media Group to focus on debt reduction and future strategic initiatives. It’s a move that will undoubtedly shape the way local