Gray Media to acquire Allen Media Group’s TV stations for $171 million

ATLANTA - Gray Media, Inc. (NYSE:GTN), currently trading at $4.14 and showing a strong year-to-date return of 37%, announced on Friday it has reached an agreement to acquire ten television stations from Byron Allen’s Allen Media Group for $171 million, expanding its broadcast footprint into three new markets. According to InvestingPro data, the company appears undervalued based on its Fair Value analysis.

The acquisition will bring Gray into Columbus-Tupelo, Mississippi; Terre Haute, Indiana; and West Lafayette, Indiana, where the company will acquire local stations that reportedly had the highest all-day ratings in their respective markets in 2024, according to Comscore data cited in the press release.

The transaction includes ABC, CBS, NBC, and FOX affiliated stations across ten markets, including WAAY in Huntsville, Alabama; WSIL in Paducah-Cape Girardeau-Harrisburg; WEVV in Evansville, Indiana; and seven other local television stations.

Gray Media expects the deal to strengthen its presence in seven existing markets by creating new duopolies that the company says will allow it to expand local news, weather, and sports programming.

"Gray anticipates closing the transaction in the fourth quarter of this year following receipt of regulatory approval, including certain waivers of FCC local ownership rules, and other customary closing conditions," the company stated in its announcement.

Moelis & Company LLC served as the exclusive financial adviser to Allen Media Group for this transaction.

Gray Media is currently the nation’s largest owner of top-rated local television stations, serving 113 television markets that reach approximately 37 percent of US television households. Allen Media Group, founded by Byron Allen in 1993, owns and operates 28 network affiliate broadcast television stations in 21 U.S. markets and ten 24-hour HD television networks. For detailed analysis and additional insights about Gray Media’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.

In other recent news, Gray Television reported second-quarter revenue that surpassed analyst expectations, even though the company faced a larger-than-anticipated loss. This development highlights the company’s ability to generate higher revenue despite financial challenges. The earnings release has drawn attention from investors and analysts alike. While there was a noted increase in revenue, the specifics of the loss were not detailed in the announcement. These results have sparked interest in the company’s financial strategies moving forward. Analyst firms are likely to assess the implications of these earnings on future projections. This update marks a significant moment for Gray Television as it navigates its financial landscape.

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