Gray Finishes Divestitures to Buy Raycom
Gray will sell TV stations in eight markets to Lockwood Broadcasting, E.W. Scripps and Tegna to complete the divestiture process connected with its proposed buy of Raycom, Gray said in a news release Monday. Gray earlier this month announced divestiture…
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deal for a ninth station to Marquee Broadcasting (see 1808160063). The total sale price for all nine divestitures is $235.5 million, “which exceeds Gray’s internal projections for divestiture proceeds,” the release said. “By divesting television stations in each of the nine overlap markets, Gray ensures that the Gray/Raycom combination will not reduce competition in those local markets,” the release said. Gray said the sales will result in the stations’ total separation from Gray. Gray “will not have any joint sales, joint retransmission, shared services, or local marketing arrangements with any divested station. Additionally, Gray will not hold an option to repurchase any divested station, nor will Gray finance or guarantee any purchaser’s indebtedness,” the release said. The hearing designation order issued by the FCC against the Sinclair/Tribune deal cited many ofsuch sharing arrangements and options as evidence Sinclair would still retain control over its divested stations (see 1808090042). The proposed divestitures will close when the Gray/Raycom transaction does, which Gray predicts will be Q4.