Gray Communications Systems Inc. of Atlanta has signed an agreement with the intent to buy Benedek Broadcasting Corp. from Stations Holding Company Inc. for $500 million and proceeds from certain station divestitures.
Benedek operates 22 television stations, which produced 2001 net revenue of $138.1 million and a broadcasting cash flow of approximately $47.5 million across 21 markets, mostly of medium size. Its assets will be added to Gray's 13 stations in 11 markets. In 2001 Gray reported a net revenue of $156.3 million and media cash flow of $40.8 million from its television station division.
The combined station group will have a large presence in the Southeast, Midwest, Great Lakes and Texas areas. The group's 20 CBS-affiliated stations will make it the largest non-network owner of CBS affiliates in the country. The transaction is expected to close by the fourth quarter of this year.
Benedek filed for Chapter 11 bankruptcy in March.
