Among the buyers of new stations tied to Nexstar Broadcasting's (NASDAQ:NXST) $4.6B deal for Media General (NYSE:MEG): Graham Media Group and Gray Television.
Graham (GHC -0.6%) closed its transaction to acquire WCWJ (CW affiliate in Jacksonville, Fla.) and WSLS (NBC affiliate in Roanoke, Va.) for $60M in cash and assuming liabilities. It will operate the stations under their existing affiliations.
Meanwhile, Gray Television (GTN -5.2%) has closed $270M in deals for WBAY (ABC affiliate in Green Bay, Wisc.) and KWQC (NBC affiliate in the Quad Cities Iowa market). On Friday Gray also closed on acquiring KTVF (NBC), KXD (CBS) and KFXF (Fox) in Fairbanks, Alaska, for $8M in cash from Tanana Valley Television Co. and Chena Broadcasting Co.
Media General (MEG +0.6%) has amended a lawsuit it filed in a Georgia station dispute that may prove key to its planned merger with Nexstar Broadcasting (NXST +1.2%).
Last month Media General had decided to "go hard" against Gray Television (GTN +1.5%) and Schurz Communications over WAGT-TV in Augusta, Ga.
Media General had secured a lower-court injunction (since stayed) blocking Gray from taking over the station and putting its spectrum into the broadcast incentive auction, as WAGT had applied to do. WAGT's opening bid price in the auction is among the highest, at $210.4M.
But Media General has dropped opposition to Gray's takeover in one court while telling another that it should get all of any auction proceeds. Media General was tied up in a joint sales agreement at the station with Schurz -- the station's former owner that got bought out by Gray.
The FCC had made unwinding the JSA between Media General and Schurz a condition for approving Media General's merger with Nexstar.
Media General (NYSE:MEG) has taken an afternoon dip, now down 2.3% on heavy volume, as dealReporter says a Georgia station dispute with Gray Television (NYSE:GTN) could hurt its chances for FCC clearance of a merger with Nexstar Broadcasting.
Volume in Nexstar (NXST -2.6%) has ticked up this afternoon as well.
Media General has decided to "go hard" against Gray and Schurz Communications over WAGT-TV in Augusta, Ga., dealReporter says -- an odd stance since Media General is seeking an OK for a broad station merger with Nexstar.
With the FCC giving the last key approval on Friday, Gray Television (GTN +6%) has closed its $442.5M acquisition of Schurz Communications, along with a complicated set of station transfers and divestitures to enable the transaction.
Net of proceeds from asset dispositions and excluding transaction costs, the total price comes to about $415.3M.
The company said it's funded the acquisitions through a term loan of $425M under its senior credit agreement.
The FCC today approved Gray Television's (GTN +3.1%) plan to purchase 15 Schurz Communications TV stations, the last hurdle in Gray's $442.5M purchase of Schurz.
The agency issued a complicated decision that will call for the unwinding of some joint sales agreements, and for a Georgia NBC affiliate to remain on the air during the broadcast incentive auction despite duopoly rule concerns.
In addition, the Justice Department gave the deal a conditional antitrust approval so long as Gray sold off WSBT in South Bend, Ind., and KAKE in Wichita, Kan.
In Augusta, Ga., Gray owns CBS affiliate WRDW and Schurz owns NBC affiliate WAGT. Gray wants to offer WAGT's spectrum in the incentive auction and take it off the air after the deal's approval. The FCC approved a temporary waiver of its duopoly rule but decided that the public interest called for WAGT to stay on the air.
Gray will have to terminate a JSA with Media General as a condition to the deal.
Gray Television (GTN -0.9%) has gotten the conditional antitrust OK to wrap its $442.5M purchase of Schurz Communications, provided that it sell two TV stations.
The Justice Department says Gray must sell WSBT in South Bend, Ind., and KAKE in Wichita, Kan., saying "Combining these stations under common ownership would have made it more costly for advertisers to communicate with consumers."
Gray Television (NYSE:GTN) is up 2.1% as it's come to deals to divest all the radio stations included in its agreement to acquire Schurz Communications' broadcast assets.
Gray had set a $442.5M deal to buy TV and radio stations from Schurz in September.
The company had planned to operate the radio stations long term, but: "In recent weeks, it became clear that experienced radio broadcasters could better lead these successful radio stations into the future than we could hope to accomplish," says Gray's Kevin Latek.
Once the Schurz transaction closes, Gray will transfer the stations to three other companies: Stations in South Bend, Ind., will go to Mid-West Family Broadcast Group; stations in Lafayette, Ind., to Neuhoff; and those in Rapid City, S.D., to the HomeSlice Group.
Gray will receive $16M total in cash for the transfers, along with the closing of the Schurz transaction, expected in Q4 or Q1.
With the TV stations in the deal, Gray will be operating in 49 TV markets (up from 30 in mid-2013) across 28 states.
Local broadcast firms Sinclair Broadcast Group (SBGI -0.8%) and Gray Television (GTN -0.4%) have agreed to swap TV stations, as Gray makes a number of moves to facilitate regulatory approvals from its $442.5M acquisition of Schurz Communications.
Sinclair is taking on the broadcast assets of WSBT, in South Bend-Elkhart, Ind., and agreed to sell Gray the broadcast assets of WLUC in Marquette, Mich.
Gray agreed to sell KAKE-TV in the Wichita, Kan., market to Lockwood Broadcast Group in exchange for Lockwood's WBXX-TV in Knoxville, Tenn. It's also sending KOTA-TV of Rapid City, S.D., to Legacy Broadcasting, and will take on KYES-TV in Anchorage, Alaska.
The South Bend DMA is about four times larger than Marquette, and Sinclair says the transaction should be accretive to annual cash flows by about $1M after synergies.
The moves are pending antitrust and FCC approvals, and are expected to close roughly by the end of the year.
Gray Television (GTN +5.3%) has a deal to acquire all the TV and radio stations of Indiana-based Schurz Communications for about $442.5M.
The deal means that Gray will operate in 49 television markets -- up from 30 in mid-2013 -- across 28 states. With five new top-rated stations, Gray will have 39 No. 1-ranked stations.
Gray will finance the deal with cash on hand and some additional borrowing. It expects on closing to have a leverage ratio, net of cash, of about 5.5x. The deal is expected to close in Q4 or Q1 depending on regulatory approvals.
The company expects it's immediately accretive to free cash flow. With synergies, the purchase price is about 7.1 times a blended average of the stations' 2015-2016 pro forma broadcast cash flow.
Gray's hosting a conference call to discuss the deal at 9 a.m. ET tomorrow.
Following a string of recent station acquisitions, Gray Television (GTN -6.2%) says it's agreed to acquire KCRG-TV, the ABC affiliate in Cedar Rapids, Iowa, for $100M in cash on hand.
It's Gray's first station in Iowa, and adds to the company's stable of stations that are top-rated in their market area.
The acquisition is immediately cash flow accretive, Gray says, as the purchase price is about 6.9 times a blended average of KCRG's 2015-2016 pro forma broadcast cash flow. Gray's operating the station as it's closed on non-license assets.
The station was sold by The Gazette Company, run as a trust for the employees' benefit, which put the station on the air in 1953 and also owns The Cedar Rapids Gazette.
Local broadcaster Gray Television (NYSE:GTN) has closed on three previously announced station acquisitions, and entered into four new transactions. The total net purchase price for all seven: $81.35M, a composite multiple of 6x 2014-2015 anticipated pro forma broadcast cash flow.
The company closed on acquisitions of KOSA (Odessa-Midland, Texas, the country's fastest-growing DMA); KMVT (Twin Falls, Idaho); and WAGM (Presque Isle, Maine).
The company also closed today on acquiring non-license assets of WFXS (Fox affiliate in Wausau-Rhinelander, Wisconsin) and KVTV (CBS affiliate in Laredo, Texas).
It also sold KBGF (NBC affiliate, Great Falls, Montana) AND KTVH (NBC/CW affiliate for Helena, Montana) to Cordillera Communications, and donated KMTF to Montana State University at Cordillera's suggestion.
Broadcast media names get jiggy after Media General agrees to buy Lin Media for nearly double last night's close.
Gray Television (GTN) +9.2% premarket, Nexstar Broadcasting (NXST) +3.2%, E.W. Scripps (SSP) +1.1%. Keep an eye on Entravision Communication (EVC) as well, along with the PowerShares Dynamic Media Portfolio (PBS).
Building on this year's torrid pace of M&A in the TV station industry, Nexstar Broadcasting Group (NXST -1%) and Mission Broadcasting buy 6 TV stations in Colorado and Florida for $37.5M from Gray Television Group (GTN -3.6%) and Excalibur Broadcasting.
The stations represent part of the 15 stations Gray acquired back in Nov. from Hoak Media with their sale to a 3rd party being a regulatory condition of the previous deal.
Nexstar expects the purchase to be immediately accretive ($0.12-$0.15/share to cash flow annually in the first 2 years), with the stations expected to generate $7M in Broadcast Cash Flow in the first year after closing.