Gray Media, Scripps Swap TV Stations for Enhanced Regional Presence

Gray Media and Scripps agree to swap TV stations across five markets to strengthen regional presence and create duopolies. The transaction involves comparable assets with no cash consideration and is expected to close in Q4 2025, subject to regulatory approvals. Gray will acquire Scripps' WSYM in Lansing, Michigan, and KATC in Lafayette, Louisiana, while Scripps will receive Gray's stations in Colorado Springs, Grand Junction, and Twin Falls.

Gray Media, Inc. (NYSE: GTN) and The E.W. Scripps Company (NASDAQ: SSP) have agreed to swap television stations across five mid-sized and small markets, creating new duopolies for both companies. The transaction involves comparable assets with no cash consideration and is expected to close in the fourth quarter of 2025, pending regulatory approvals [1].

Gray Media will acquire Scripps' WSYM (Fox) in Lansing, Michigan, and KATC (ABC) in Lafayette, Louisiana, enhancing its presence in these areas. In return, Scripps will take over Gray's KKTV (CBS) in Colorado Springs, as well as stations in Grand Junction, Colorado, and Twin Falls, Idaho, strengthening its operations in the West [1].

The transaction aims to bolster financial durability and enhance local news and sports programming for both companies. Gray anticipates expanding news staff and local newscast hours, which will improve local content delivery and community engagement [1]. Scripps, on the other hand, will expand its local sports and news strategies in key growth geographies [1].

The swap involves the even exchange of comparable assets, indicating a balanced and strategic approach to growth for both companies without immediate cash outlays. The consideration for each transaction is the performance of the other transaction [1].

Regulatory approvals are needed for the acquisition, which could introduce uncertainty into the overall transaction. The necessity for obtaining waivers of outdated local ownership restrictions suggests potential challenges that could undermine the anticipated benefits of the deal for Gray [1].

References:
[1] https://www.nasdaq.com/articles/gray-media-and-scripps-announce-television-station-swap-create-new-duopolies-five-markets