Gray Media and Scripps agree to swap TV stations across five markets

ATLANTA/CINCINNATI - Gray Media, Inc. (NYSE:GTN), a $463 million market cap broadcaster currently trading below its InvestingPro Fair Value, and The E.W. Scripps Company (NASDAQ:SSP) announced today they have entered into agreements to swap television stations across five markets, allowing both broadcasters to create new duopolies.

Under the agreement, Gray will acquire Scripps’ WSYM (Fox) in Lansing, Michigan, and KATC (ABC) in Lafayette, Louisiana. In return, Scripps will obtain Gray’s KKTV (CBS) in Colorado Springs, Colorado, KKCO (NBC) and KJCT-LP (ABC) in Grand Junction, Colorado, and KMVT (CBS) and KSVT-LD (Fox) in Twin Falls, Idaho.

The transaction involves an even exchange of comparable assets with no cash consideration paid by either company.

Gray President and Co-CEO Pat LaPlatney said the company anticipates expanding news staff and hours of live local newscasts at both acquired stations soon after closing.

For Scripps, the acquisitions strengthen its regional presence in the Western United States, where it already operates stations across seven states.

"These new stations will allow Scripps to expand upon our local sports and news strategies in key growth geographies for us," said Scripps President and CEO Adam Symson in the press release.

Both companies stated the transactions are expected to close in the fourth quarter of 2025, pending regulatory approvals. The companies noted that certain waivers of local ownership restrictions will be required.

Gray Media is the nation’s largest owner of top-rated local television stations, reaching approximately 37 percent of U.S. television households, with annual revenue of $3.6 billion. The company’s stock has shown remarkable strength with a 62.5% gain year-to-date, and currently offers a 6.5% dividend yield. According to InvestingPro, which offers 12 additional investment insights for GTN, the company maintains a "GREAT" overall financial health score. Scripps operates more than 60 stations in over 40 markets nationwide.

In other recent news, Gray Media reported its financial results for the first quarter of 2025, which showed a narrower loss than expected. The company posted an earnings per share (EPS) of -$0.23, better than the anticipated -$0.43, and achieved revenue of $782 million, exceeding the forecast of $773.05 million. This performance was positively received by investors, as it reflects strategic cost-saving measures and operational optimizations. Additionally, Gray Media renewed its affiliation agreement with CBS for 52 of its network stations, although its Atlanta station WANF will become independent in 2025.

The company also announced a reshuffle of its general managers in Nebraska, appointing Shannon Booth as the new General Manager of WOWT in Omaha and Jacque Harms taking over several other stations in the state. This move underscores Gray Media’s commitment to leadership and excellence in broadcasting. Furthermore, the company achieved $60 million in annualized cost savings, contributing to its financial health.

Gray Media’s strategic focus includes exploring mergers and acquisitions to strengthen its market position, particularly in light of potential regulatory changes. The company is also enhancing its local content offerings, including sports rights agreements, to increase the relevance of its stations. These developments reflect Gray Media’s efforts to adapt and thrive in the competitive broadcasting landscape.

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