E.W. Scripps and Gray Media Announce Station Swap Deal.

E.W. Scripps Company has entered into a station swap deal with Gray Media, acquiring stations in Colorado and Idaho, and Gray acquiring stations in Michigan and Louisiana. The transaction aims to enhance market scale and financial stability for both companies, allowing them to expand local news and sports programming. The deal is expected to close in Q4 2025, pending regulatory approvals.

Gray Media, Inc. (NYSE: GTN) and The E.W. Scripps Company (NASDAQ: SSP) have entered into an agreement to swap television stations in five mid-sized and small markets, creating new duopolies for both companies. The deal aims to enhance market scale and financial stability, allowing them to expand local news and sports programming.

Gray will acquire WSYM (Fox) in Lansing, Michigan, and KATC (ABC) in Lafayette, Louisiana, while Scripps will take over Gray's KKTV (CBS) in Colorado Springs, as well as stations in Grand Junction, Colorado, and Twin Falls, Idaho. The transactions are expected to close in the fourth quarter of 2025, pending regulatory approvals.

The station swap will create new duopolies that enhance market scale and financial durability for Gray Media, ultimately leading to better public service through local news and sports programming. Gray's acquisition of WSYM in Lansing and KATC in Lafayette will complement its existing operations and strengthen its presence in key markets. The transaction is structured as an even exchange of comparable assets, indicating a balanced and strategic approach to growth for both companies without immediate cash outlays. Gray anticipates expanding news staff and local newscast hours, which will improve local content delivery and community engagement.

Scripps will bolster its regional presence in the West, where it owns and operates television stations across Montana, Idaho, Colorado, Utah, Arizona, Nevada, and California. The acquisitions will allow Scripps to expand upon its local sports and news strategies in key growth geographies.

The swap involves the even exchange of comparable assets, with neither company paying 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. The regulatory approvals will require certain waivers of outdated local ownership restrictions that have uniquely restricted local broadcasters' ability to compete in today’s dynamic and highly competitive media environment.

Forward-looking statements highlight risks and uncertainties, including the possibility of not completing the transaction within the expected timeframe, which could impact investor confidence and market perception.

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