Gray Media and Scripps Strike Deal to Exchange Television Stations in Key Markets

Gray Media and Scripps Enter Agreements for Station Exchanges

In a strategic move set to reshape the local broadcasting landscape, Gray Media, Inc. (NYSE: GTN) and The E.W. Scripps Company (NASDAQ: SSP) have announced they will exchange television stations in several mid-sized and small markets. This initiative is aimed at creating new duopolies that will enhance their operational scale and provide significant benefits to their respective communities.

Details of the Exchange

The agreement involves Gray Media acquiring two stations from Scripps: WSYM (Fox) in Lansing, Michigan, and KATC (ABC) in Lafayette, Louisiana. With these acquisitions, Gray Media will hold a stronger position in Lansing, where they already own WILX (NBC), thus forming a potent broadcast duopoly. Additionally, KATC will complement Gray's established presence in Louisiana, effectively expanding their regional influence and operational capabilities.

Pat LaPlatney, Gray's President and Co-CEO, expressed optimism about the deal, noting, "We are very pleased to be executing a successful set of station swaps with Scripps that brings great value to both companies." He highlighted that the strategic nature of these acquisitions would allow for the expansion of news staff and a boost in live local newscast hours, thereby enhancing community engagement through local news coverage.

Conversely, Scripps will acquire several stations from Gray Media, including KKTV (CBS) in Colorado Springs, KKCO (NBC) in Grand Junction, and KMVT (CBS) in Twin Falls, Idaho. These acquisitions are expected to fortify Scripps' existing regional presence in the West and improve the company’s operational efficiency. Adam Symson, Scripps President and CEO, stated, "These new stations will allow Scripps to expand upon our local sports and news strategies in key growth geographies for us."

The exchanges will occur without any cash transactions between the two companies, as both parties have agreed to an equitable swap of comparable assets.

Regulatory Approval and Forward Plans

Gray and Scripps are optimistic about closing the deal in the fourth quarter of the year, pending receipt of necessary regulatory approvals. However, this process may require waivers from outdated local ownership restrictions, which have hampered broadcasters' competitive capacity in a fast-evolving media environment. To facilitate a seamless transition, both companies plan to work closely with regulators and stakeholders.

This agreement marks a significant development in the broadcasting sector, highlighting the ongoing strategic shifts that media companies are undertaking to adapt to changing market dynamics and enhance service delivery to their audiences.

As both Gray Media and Scripps aim to bolster their operations, viewers in the affected markets can look forward to more robust local news coverage and an enriched viewing experience. New synergies from these partnerships could lead to innovative programming and improved community engagement, signifying an exciting new chapter for both companies.

About Gray Media and Scripps

The E.W. Scripps Company is one of the largest local TV broadcasters in the United States, operating over 60 stations across more than 40 markets, reinforcing its commitment to quality journalism. Meanwhile, Gray Media remains the largest owner of top-rated local television stations in the country, reaching around 37 percent of U.S. households.

Through this exchange, both companies are poised to reinforce their commitments to provide quality local news and sports programming, ensuring they continue to serve their communities effectively in the years to come.