Deborah D. McAdams /
07.24.2014 02:55 PM
Gray To Acquire Two Stations for $128 Million
SJL Holdings to sell two ABC affiliates
ATLANTA—Gray Television announced that it has agreed to acquire WJRT-TV and WTVG-TV from affiliates of SJL Holdings LLC for approximately $128.0 million in cash.

WJRT-TV and WTVG-TV are ABC-affiliated television stations serving the Flint-Saginaw-Bay City, Mich., and Toledo, Ohio, television markets, respectively. In addition, WTVG-TV will soon add a local CW station as a multicast channel. Nielsen ranks the Flint-Saginaw-Bay City at No. 68 and Toledo at 76.

Gray said WJRT-TV and WTVG-TV lead their local markets in all-day ratings and in most, if not all, local newscasts. According to BIA revenue data cited by Gray, WJRT-TV is the highest ranked television station in its market, and WTVG-TV is a close second ranked station in its market.

The transaction purchase price represents a multiple of approximately 7x a blended average of 2012-13 pro forma broadcast cash flow of the stations, including expected synergies. As such, Gray’:s acquisition of WJRT-TV and WTVG-TV will be immediately free cash flow accretive to Gray. Gray expects to finance the transaction with new term loans, cash on hand and/or by accessing the capital markets.

The transaction is subject to receipt of regulatory and other approvals and is expected to close in the third or fourth quarter of 2014.  Cooley LLP served as legal counsel for Gray. Proskauer served as legal counsel for SJL.

Upon completion of all pending transactions, Gray will own and/or operate television stations in 44 television markets broadcasting 142 program streams including 77 affiliates of the Big Four networks, reaching just over 8 percent of U.S. TV households.



Comments
Post New Comment
If you are already a member, or would like to receive email alerts as new comments are
made, please login or register.

Enter the code shown above:

(Note: If you cannot read the numbers in the above
image, reload the page to generate a new one.)

No Comments Found




Thursday 10:05 AM
NAB Requests Expedited Review of Spectrum Auction Lawsuit
“Broadcasters assigned to new channels following the auction could be forced to accept reductions in their coverage area and population served, with no practical remedy.” ~NAB

Wall Street Communications /   Friday 06:11 PM
Primestream Products on Display at CAPER 2014:
Wall Street Communications /   Friday 04:13 PM
Wohler Products at CCW 2014

 
Featured Articles
Exhibitions & Events
Discover TV Technology