Scripps, Gray Media enter agreements to swap television stations

Gray Media (GTN) and The E.W. Scripps Company (SSP) have entered into agreements to swap television stations across five mid-sized and small markets, resulting in the creation of new duopolies for each group. The local broadcasters anticipate these transactions will give them the market scale and depth to strengthen their financial durability, in turn allowing them to preserve and deepen public service to their communities with essential local news and sports programming. Gray will acquire Scripps’ WSYM in Lansing, Michigan, and KATC in Lafayette, Louisiana. The acquisition of WSYM will create a duopoly in Lansing, where Gray owns WILX, and the acquisition of KATC will complement Gray’s strong presence in the Southeast, including all other markets in Louisiana. Scripps will acquire Gray’s KKTV in Colorado Springs, Colorado, where Scripps owns KOAA; KKCO and low power station KJCT-LP in Grand Junction, Colorado; and KMVT and low power station KSVT-LD in Twin Falls, Idaho, where Scripps owns low power station KSAW-LD. 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. The swap involves the even exchange of comparable assets. In particular, the consideration for each transaction is the performance of the other transaction. As a result, neither company will pay cash consideration to the other. Gray and Scripps anticipate closing both sides of the swap simultaneously in the fourth quarter of this year following receipt of regulatory and other customary approvals.