Two Radio Stations Included In Gray Television's Purchase Of Raycom Media

Deal

GRAY TELEVISION's acquisition of RAYCOM MEDIA to create a combined television company with 142 full-power TV stations in 92 markets serving 24% of the country (before divestitures) will also include two radio stations in the package. 

GRAY is buying RAYCOM for $3.647 billion ($2.85 billion in cash, $650 million in new preferred stock, 11.5 million shares of GRAY common stock), and in the bargain will acquire RAYCOM's two radio properties, Spanish Adult Hits KEYU-F (102.9 MUNDO FM)/AMARILLO and Regional Mexican KTXC (LA LEY 104.7)/LAMESA-MIDLAND-ODESSA, TX.  The deal also inclused RAYCOM SPORTS, TUPELO RAYCOM, RTM PRODUCATIONS, and BROADVIEW MEDIA; COMMUNITY NEWSPAPER HOLDINGS, INC. and PURECARS will be spun off from RAYCOM and are not included in the deal, which is expected to close in fourth quarter 2018.

After the merger, RAYCOM Pres./CEO PAT LAPLATNEY will become GRAY's Pres./Co-CEO, joining GRAY's Exec. Chairman/Co-CEO HILTON HOWELL, while former RAYCOM Pres./CEO PAUL MCTEAR will join the GRAY Board of Directors. As of JULY 1st, Co-COO BOB SMITH will become solo COO and co-COO NICK WALLER will become Chief Administrative Officer.

“Today we announce the transformation of GRAY TELEVISION into a true leader in the broadcast television industry,” said HOWELL. “Combining our company with the excellent Raycom stations and the superb RAYCOM employees will create a powerhouse local media operation. Together, this new portfolio of leading local media outlets will excel at what they do best, which is to provide the local news that local communities trust, the entertainment and sports content that viewers crave, and the incredible reach that advertisers demand. Indeed, this is a transaction in which there can be no doubt that local community standards will be honored and embraced. We are excited to welcome the dedicated reporters, account executives, and technologists of RAYCOM to our growing corporate family. On behalf of the Board, our employees, and our investors, I convey our deepest gratitude to JIM RYAN and KEVIN LATEK for leading our efforts on this momentous, transformative transaction.”

“We are thrilled to be joining GRAY TELEVISION as we share the same core values of journalistic excellence and community service,” said LAPLATNEY. “Together, we will be a stronger, more impactful force for our audiences, advertisers, and communities. I have tremendous respect for the way HILTON HOWELL and GRAY TELEVISION have grown their portfolio with a focus on localism. I look forward to working alongside HILTON and the wonderfully talented people of GRAY TELEVISION as the combined entities create an even greater opportunity for growth as a leader in the broadcast industry. I also want to extend a special thank you to PAUL MCTEAR, BECKY SHEFFIELD, ELLENANN YELVERTON and the entire RAYCOM team for their tireless efforts on this transaction.”

GRAY plans to divest TV stations in nine markets to satisfy ownership caps.  The stations to be divested, all but one from RAYCOM's portfolio.  The stations being spun off are FOX affiliate WTNZ-TV (FOX 43)/KNOXVILLE; CBS affiliate WTOL-TV/TOLEDO; ABC/TELEMUNDO affiliate KXXV (25 ABC)/WACO; ABC affiliate WTXL-TV (ABC 27)/TALLAHASSEE; FOX affiliate WFXG-TV (FOX 54)/AUGUSTA, GA; NBC/CW/TELEMUNDO affiliate KWES-TV (NEWSWEST 9/TELEMUNDO 20)/ODESSA-MIDLAND; FOX affiliate WPGX-TV (FOX 28)/PANAMA CITY, FL; CBS/MY NETWORK TV/METV/CW affiliate WSWG-TV/ALBANY, GA; and FOX affiliate WDFX-TV (FOX 34)/DOTHAN, AL.

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