Gray Media Agrees to Purchase Television Stations in Ten Markets from Byron Allen’s Allen Media Group

Rhea-AI Summary

Gray Media (NYSE:GTN) has announced a significant acquisition agreement with Byron Allen's Allen Media Group (AMG) to purchase television stations in ten markets for $171 million. The transaction will expand Gray's presence into three new markets - Columbus-Tupelo (MS), Terre Haute (IN), and West Lafayette (IN) - acquiring the highest-rated stations in these locations.

The deal will create new duopolies in seven existing markets, enabling Gray to enhance local news, weather, and sports programming. The acquisition includes ABC, CBS, FOX, and NBC affiliated stations across various markets. Gray expects to close the transaction in Q4 2025, subject to regulatory approvals including FCC local ownership rule waivers.

Positive

• Acquisition of highest-rated stations in three new markets
• Creation of valuable duopolies in seven existing markets
• Opportunity to expand local news, weather, and sports coverage
• Strategic growth of Gray's market presence to reach approximately 37% of US television households

Negative

• Significant capital expenditure of $171 million
• Transaction requires regulatory approvals and FCC waivers
• Integration risks associated with multiple station acquisitions

Insights

Media Industry Analyst

Gray Media's $171M acquisition of 10 AMG stations strengthens market position with strategic duopolies and high-performing new markets.

Gray Media's $171 million acquisition of ten television stations from Allen Media Group represents a strategic expansion of its broadcasting footprint. The deal brings Gray into three entirely new markets (Columbus-Tupelo, MS; Terre Haute, IN; and West Lafayette, IN) where they're acquiring the highest-rated stations in each market based on 2024 Comscore data. This focus on top-performing stations indicates a quality-over-quantity approach to market entry.

More significantly, the transaction creates seven new duopolies in existing markets, a strategy that historically drives operational efficiencies and improved economics through combined news operations, shared infrastructure, and enhanced advertising packages. These duopolies allow Gray to leverage scale while promising expanded local programming. The company already holds impressive market position, operating the top-rated station in 78% of its markets and first or second-rated stations in 99% of markets.

The relatively modest $171 million price tag represents approximately $17.1 million per station, which appears reasonable given the stations' market positions. The anticipated regulatory approval timeline (Q4 2025) suggests Gray has analyzed potential FCC hurdles, though their explicit mention of needing waivers indicates some regulatory complexity ahead. This transaction builds on Gray's existing scale, which already reaches approximately 37% of US television households through 113 markets, reinforcing their position as the nation's largest owner of top-rated local television stations.

         

Atlanta , Aug. 08, 2025 (GLOBE NEWSWIRE) -- Gray Media, Inc. (“Gray”) has reached an agreement with Byron Allen’s Allen Media Group, Inc. (“AMG”) to acquire AMG’s television stations in ten markets for $171 million.

The transaction would bring Gray into three new markets – Columbus-Tupelo, Mississippi; Terre Haute, Indiana; and West Lafayette, Indiana – with the acquisition of the local television station in each market that had the highest all-day ratings in 2024, according to Comscore. Gray expects the transaction to strengthen the company’s presence in the seven other markets by creating new duopolies that would allow Gray to preserve and deepen public service to their communities with expanded local news, local weather, and local sports programming.

Specifically, the transaction includes the following local television stations:

DMA	MARKET	STATION
75	Huntsville, AL	WAAY (ABC)
90	Paducah-Cape Girardeau-Harrisburg	WSIL (ABC)
109	Evansville, IN	WEVV (CBS/FOX)
110	Ft. Wayne, IN	WFFT (FOX)
121	Montgomery, AL	WCOV (FOX)
124	Lafayette, LA	KADN (FOX/NBC)
134	Columbus-Tupelo, MS	WTVA (ABC/NBC)
137	Rockford, IL	WREX (NBC)
159	Terre Haute, IN	WTHI (CBS/FOX)
189	West Lafayette, IN	WLFI (CBS)

Gray anticipates closing the transaction in the fourth quarter of this year following receipt of regulatory approval, including certain waivers of FCC local ownership rules, and other customary closing conditions.

Moelis & Company LLC acted as exclusive financial adviser to Allen Media Group in this transaction.

Forward-Looking Statements:

This press release contains certain forward-looking statements that are based largely on Gray’s current expectations and reflect various estimates and assumptions by Gray. These statements are statements other than those of historical fact and may be identified by words such as “estimates,” “expect,” “anticipate,” “will,” “implied,” “assume” and similar expressions. Forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results and achievements to differ materially from those expressed in such forward-looking statements. Such risks, trends and uncertainties, which in some instances are beyond Gray’s control, include the inability to complete the proposed transaction within the expected timeframe, or at all, and other future events. Gray is subject to additional risks and uncertainties described in its quarterly and annual reports filed with the Securities and Exchange Commission from time to time, including in the “Risk Factors,” and management’s discussion and analysis of financial condition and results of operations sections contained therein, which reports are made publicly available via www.sec.gov. Any forward-looking statements in this communication should be evaluated in light of these important risk factors. This press release reflects management’s views as of the date hereof. Except to the extent required by applicable law, Gray undertakes no obligation to update or revise any information contained in this communication beyond the date hereof, whether as a result of new information, future events or otherwise.

About Gray Media:

Gray Media, Inc. (NYSE: GTN) is a multimedia company headquartered in Atlanta, Georgia. The company is the nation’s largest owner of top-rated local television stations and digital assets serving 113 television markets that collectively reach approximately 37 percent of US television households. The portfolio includes 78 markets with the top-rated television station and 99 markets with the first and/or second highest rated television station during 2024, as well as the largest Telemundo Affiliate group with 44 markets.  The company also owns Gray Digital Media, a full-service digital agency offering national and local clients digital marketing strategies with the most advanced digital products and services.  Gray’s additional media properties include video production companies Raycom Sports, Tupelo Media Group, and PowerNation Studios, and studio production facilities Assembly Atlanta and Third Rail Studios. For more information, please visit www.graymedia.com.

About Allen Media Group:

Chairman and CEO Byron Allen founded Allen Media Group in 1993. Headquartered in Los Angeles, it has offices in New York and Atlanta. Allen Media Group owns/operates 28 ABC-NBC-CBS-FOX network affiliate broadcast television stations in 21 U.S. markets and ten 24-hour HD television networks serving nearly 300 million subscribers: THE WEATHER CHANNEL, PETS.TV, COMEDY.TV, RECIPE.TV, CARS.TV, ES.TV, MYDESTINATION.TV, JUSTICECENTRAL.TV, THEGRIO TELEVISION NETWORK, and HBCU GO. Allen Media Group also owns the digital streaming platforms HBCU GO, SPORTS.TV, THEGRIO, THE WEATHER CHANNEL STREAMING APP, and LOCAL NOW--the free-streaming AVOD service, which delivers real-time, hyper-local news, weather, traffic, sports, and lifestyle information. Allen Media Group also produces, distributes, and sells advertising for 74 television programs, making it one of the largest independent producers/distributors of first-run syndicated television programming for broadcast television stations. With a library of over 7,000 hours of owned content across multiple genres, Allen Media Group provides video content to broadcast television stations, cable television networks, mobile devices, and multimedia digital. Allen Media Group’s mission is to provide excellent content to its viewers, global platforms, and Fortune 500 advertising partners. For more information, visit: www.allenmedia.tv

Gray Contact:

Kevin P. Latek, Executive Vice President, Chief Legal and Development Officer, 404-266-8333

Allen Media Group Contact:

Eric Peterkofsky, Executive Vice President, Talent & Public Relations, 310-277-3500

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FAQ

What is the value of Gray Media's acquisition of Allen Media Group stations?

Gray Media is acquiring television stations in ten markets from Allen Media Group for $171 million.

Which new markets will Gray Media (GTN) enter through this acquisition?

Gray Media will enter three new markets: Columbus-Tupelo, Mississippi; Terre Haute, Indiana; and West Lafayette, Indiana.

When is the Gray Media-Allen Media Group transaction expected to close?

The transaction is expected to close in the fourth quarter of 2025, pending regulatory approvals and other customary closing conditions.

How many television stations is Gray Media acquiring from Allen Media Group?

Gray Media is acquiring ten television stations across different markets, including ABC, CBS, FOX, and NBC affiliates.

What percentage of US television households does Gray Media reach after this acquisition?

Gray Media reaches approximately 37 percent of US television households through its television stations and digital assets.