Gray Media to Acquire Byron Allen's Television Stations in Ten Markets for $171 Million

Gray Media has agreed to purchase television stations in ten markets from Byron Allen's Allen Media Group for $171 million. The transaction includes local stations in markets such as Huntsville, AL, Paducah, IN, and Lafayette, LA, and is expected to strengthen Gray's presence in these and other markets. The acquisition is subject to regulatory approval and is expected to close in the fourth quarter of 2025.

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 based on 2024 Comscore data [1].

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 [1].

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 [1].

Gray Media's strategic expansion into new markets and the creation of duopolies aim to drive operational efficiencies and improved economics through combined news operations, shared infrastructure, and enhanced advertising packages. The company already holds impressive market positions, operating the top-rated station in 78% of its markets and first or second-rated stations in 99% of markets [1].

This acquisition strengthens Gray Media's position in the broadcasting landscape and highlights their commitment to expanding their local television presence. As the transaction awaits regulatory approval, investors should closely monitor the progress and potential impact on Gray Media's financial performance and market position.

References:
[1] https://www.stocktitan.net/news/GTN/gray-media-agrees-to-purchase-television-stations-in-ten-markets-ploo837cl30d.html