ATLANTA—Gray Media has announced an agreement to buy the Jackson, Tennessee, ABC affiliate WBBJ-TV, known locally as WBBJ 7, from Bahakel Communications, Limited.

Financial terms of the deal, which is expected to close in Q1 2026, were not disclosed.

Since its launch 70 years ago, WBBJ 7 has been the most-watched local news television station in its market. Upon closing, the station will join Gray’s portfolio of leading local news television stations across the country and throughout the region, including in the adjacent markets of Nashville, Memphis, Huntsville and Paducah.

“Gray is honored to be entrusted by Bahakel Communications as the next long-term stewards of WBBJ 7,” said Kevin Latek, Gray’s chief legal and development officer. “We look forward to welcoming the station and its dedicated employees into our extensive local news and sports operations in this region and working with these employees to further enhance their long record of service to local viewers and businesses.”

“This sale marks a pivotal step for Bahakel Communications as we focus our footprint and strengthen our digital platforms and entertainment division,” said Beverly Bahakel, CEO. “We are committed to ensuring a smooth and positive transition for WBBJ’s audience, advertisers, and employees. We believe Gray is the right group to build on WBBJ’s longstanding legacy of serving the Jackson community and its commitment to delivering trusted local news and information.”

Gray anticipates that the transaction will be immediately free cash flow accretive, and it expects to fund the acquisition with cash on hand. The parties anticipate closing the transaction following receipt of regulatory and other approvals in the first quarter of 2026.

Kalil & Co., Inc. represented Bahakel in this transaction.

ATLANTA—Gray Media has struck a deal to acquire Allen Media Group television stations in 10 markets for $171 million. Byron Allen’s AMG had announced plans to sell its 21 network affiliate stations in June.

The transaction would bring Gray into three new markets: Columbus-Tupelo, Miss.; Terre Haute, Ind.; and West Lafayette, Ind.

Gray expects the transaction to strengthen its presence and public service committments in the seven other markets by creating new duopolies that would allow it to expand local news, weather and sports programming, the company said.

The deal indicates growing confidence among broadcasters that the Federal Communications Commission will lift current broadcast-station ownership caps.

The deal includes the following stations:

• DMA 75: WAAY, Huntsville, Ala. (ABC)
• DMA 90: WSIL, Paducah-Cape Girardeau-Harrisburg, Mo. (ABC)
• DMA 109: WEVV, Evansville, Ind. (CBS/Fox)
• DMA 110: WWFT, Fort Wayne, Ind. WFFT (Fox)
• DMA 121: WCOV, Montgomery, Ala. (Fox)
• DMA 124: KADN, Lafayette, La. (Fox/NBC)
• DMA 134: WTVVA, Columbus-Tupelo, Miss. (ABC/NBC)
• DMA 137: WREX, Rockford, Ill. (NBC)
• DMA 159: WTHI, Terre Haute, Ind. (CBS/FOX)
• DMA 189 WLFI, West Lafayette, Ind. (CBS)

Click on the Image to Enlarge

CHANTILLY, VA.—Will 2018 bring an increase in broadcast station trading in the United States? There are reasons to think it might.

Research firm BIA/Kelsey noted that 2017 was a strong if not overwhelming year for station sales. Its updated year-end figures have 107 TV stations selling for a total value of $4.7 billion, and 755 stations sold for a total of $3.3 billion.

“The number of television stations sold increased by 10 over the previous year while the total value of those stations sold decreased by nearly $600 million,” the firm wrote. “On the other hand, the number of radio stations sold increased by 179 and the total value of those stations also increased by over $2.8 billion. Those increases can be credited to the Entercom acquisition of CBS Radio during the year.”

Noting that Entercom was able to finance the transaction and integrate these stations, BIA/Kelsey called it “a very good sign for the local radio industry when business success follows such a major acquisition.”

What’s ahead? The research company noted that the Federal Communication Commission has relaxed rules on local ownership of TV stations and on television-radio and broadcast-newspaper ownership. “While there is some question as to whether some or all of these new regulations will be challenged in the courts, there is some optimism that this relaxation will lead to an increase in station trading activity,” it stated.

Also possibly heralding change is federal tax reform. “By lowering the overall corporate tax rate and full expensing of new capital equipment for five years,” BIA/Kelsey wrote, “the values of broadcast properties (much like most other businesses) will most likely increase. This potential positive influence on these values should be taken in context of the longer-term trend of values reflecting the increased competition faced by local radio and television stations.” The company reported it saw some increases in the values of publicly traded broadcast companies while tax reform was being worked out but added that it will take time for increased values to lead to higher prices for stations. 

“At the same time, one cannot overlook the continuing strengthening economy, the record high Dow and how it all affects station transactions. Coupled with the impact of the deregulation and the new tax legislation, this stronger economy may lead to increased activity by some of the publicly traded broadcast companies, as well as privately held companies looking to expand.”