ATLANTA and CINCINNATI—Gray Media and The E.W. Scripps Co. have agreed to swap television stations across five midsized and small markets, resulting in the creation of new duopolies for each group.
As part of the agreements, Gray will acquire Scripps’ WSYM (Fox) in Lansing, Mich., (DMA 113), and KATC (ABC) in Lafayette, La. (DMA 125). The acquisition of WSYM will create a duopoly in Lansing, where Gray owns WILX (NBC), and the acquisition of KATC will complement Gray’s strong presence in the Southeast, including all other markets in Louisiana.
Gray and Scripps said that the swap involves the even exchange of comparable assets. As a result, “neither company will pay cash consideration to the other,” the station groups said.
The companies said these transactions would give the two station groups the market scale and depth to strengthen their financial durability, allowing them to add more local news and sports programming.
The swaps come at a time when the FCC has been more lenient in approving deals that allow a station group to own more than one top-four network station in a DMA.
Gray and Scripps anticipate closing both sides of the swap simultaneously in the fourth quarter of this year, after regulatory and other customary approvals. The regulatory approvals will require certain waivers of local ownership restrictions, the companies said.
“We are very pleased to be executing a successful set of station swaps with Scripps that brings great value to both companies,” Gray President and Co-CEO Pat LaPlatney said. “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, Colo. (DMA 86), where Scripps owns KOAA (NBC); KKCO (NBC) and low power station KJCT-LP (ABC) in Grand Junction, Colo. (DMA 187); and KMVT (CBS) and low power station KSVT-LD (Fox) in Twin Falls, Idaho (DMA 189), 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.
“These new stations will allow Scripps to expand upon our local sports and news strategies in key growth geographies for us,” Scripps President and CEO Adam Symson said. “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 parties intend to work closely with regulators, employees and other stakeholders to obtain the requisite approvals and to facilitate the smooth transition of these stations to new ownership.
