Gray Television

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Gray Television, Inc.
FormerlyGray Communications Systems, Inc.
TypePublic
  • NYSE: GTN
  • NYSE: GTN.A
  • Russell 2000 Component (GTN)
IndustryBroadcast television
PredecessorThe Herald Publishing Company
Founded1946; 75 years ago (1946)
FounderJames Gray
Headquarters
Atlanta, Georgia
,
United States
Area served
  • United States
  • 102 Markets in 36 states
  • Reach: 25%
Key people
  • Hilton H Howell, Jr.
  • (Executive chairman, CEO)
  • Pat LaPlatney
  • (President, Co-CEO)
Products162 terrestrial TV stations
RevenueIncrease$2.122 billion USD (2019)
Increase$478 million USD (2019)
Decrease$127 million USD (2019)
Total assetsIncreaseUS$6.972 billion USD (2019)
Total equityIncreaseUS$1.464 billion USD (2019)
Number of employees
8,018 (2019)
Websitegray.tv
Footnotes / references
[1][2]

Gray Television, Inc. is an American publicly traded television broadcasting company based in Atlanta, Georgia. Founded in 1946 by James Harrison Gray as Gray Communications Systems, the company owns or operates 162 stations across the United States in 103 markets. Its station base consists all ranges of media markets, from as large as Charlotte, to one of the smallest markets, North Platte, Nebraska.

History[]

James H. Gray started his communication business with the purchase of The Herald Publishing Company (a company founded in 1897 to promote The Albany Herald newspaper started in 1891), in 1946 after he returned from World War II. Gray launched WALB-TV in 1954. In 1960, Gray purchased WJHG-TV in Panama City, Florida, and followed it later in the decade with KTVE serving Monroe, Louisiana and southern Arkansas.[3][4]

In 1986 Gray died, leaving his 50.5% share of the stock in a trust for his children with stipulation that they run the business together, sell their stock with each other or sell out together.[4] This caused difficulties as two of the three wanted to sell with the third unable to purchase. In 1991, to break the stalemate, the board of directors had the company purchase 25% of their shares.[3][4]

Gray Communication Systems[]

The company was then taken public on NASDAQ's small-cap market in the 2nd quarter 1992. The price per share dropped to $8. The company put itself-or any part up-for sale by the end of 1992. While the board of directors received about 40 offers, Bull Run Corporation purchased the remaining shares of the Gray siblings, who as part of the deal resigned from the board.[3][4]

New management was put in place at all three TV stations. Bull Run Corporation, primarily owned by J. Mack Robinson, decided to make Gray a Southeast regional media company, expanding its focus beyond the state of Georgia.[4] Gray purchased two TV stations (WKYT-TV and WYMT) from the failed and government-seized Kentucky Central Life Insurance Co. in September 1994 after a court challenge to the sale by Kentucky Central builder Garvie Kincaid.[3]

In 1994 and 1995, Gray purchased two newspapers, the Rockdale Citizen (acquired May 31, 1994) and Gwinnett Post-Tribune (acquired January 1995; quickly renamed Gwinnett Daily Post) and seven advertising weeklies. In 1995, the company moved its stock listing to the New York Stock Exchange. By this time, Robinson, directly or through Bull Run, owned 44% of the company's stock. Gray had started to focus on its TV station segment over the newspaper holding while TV produced more income and the newspapers' income were declining. Just months after doubling the Daily Post's staff, one third were laid off and a quarter of The Albany Herald's staff followed in January 1996. Newspaper leaders resigned during this period–from the corporate president in late 1995 to the Citizens' editor and publisher.[3]

Fiscal
Year		 Revenue
millions		 Net Income
(Loss) millions[3]
1994 $36.5 $2.8
1995 58.6 .9
1996 79.3 2.5
1997 103.5 (1.4)[5]
1998 128.8 41.6[5]
1999 143.9 (6.3)[5]
2000 120.6 (6.2)[6]
2001 106.4 (13.3)[6]
2002 146.7 (27.8)[6]
2003 243.0 14.0[7]
2004 293.2 44.2[7]
2005 261.5 3.3[7]
2006 332.1 11.7[8]
2007 307.2 (23.1)[8]
2008 327.1 (202.0)[8]
2009 270.3 (23.0)[8]
2010 346.0 23.1[8]
2011 307.1 9.0[9]
2012 404.8 28.1[9]
2013 346.2 18.2[9]
2014 508.1 48.0[9]
2015 597.3 39.3[9]
2016 812.4 62.2[10]
2017 882.7 261.9[10]
2018 1,084.1 210.8[11]

In 1996, Gray added additional TV stations while entering additional communication industry segments. The company was considered in 1996 by Fortune magazine as the 81st fastest growing company, having a 48% percent growth rate. WRDW-TV was purchased in January 1996. In September 1996 a basket purchase from First American Media, Inc., Gray got two TV stations (WCTV and WVLT-TV), Satellite and Production Business Services, which was renamed Lynqx Communications and PortaPhone paging business.[3]

In August and September 1996, Gray raised additional operating funds by various means. On August 20, KTVE was sold for cash and accounts receivable. The company issued and sold Class B common stock (through a public offering), senior subordinated notes and preferred stock in September. Also, a new bank credit facility was arranged. This brought the company total to $534.5 million in available funds with $409.5 million directly available.[3]

Also in September 1996, Ralph Gabbard, the newly named president and CEO, died from a heart attack at age 50. Robinson, Bull Run's chair, took over as interim CEO and president with Bull Run CEO Robert Prather as interim executive vice-president, acquisitions.[3]

With its additional funds, Gray continued purchasing in 1997 with two announcements in January and February. The company bought Gulflink Communications, Inc., a transportable satellite uplink business based in Baton Rouge, Louisiana, in April 1997 to go along with Lynqx. With Raycom Media acquiring a station from AFLAC Broadcast Group, Inc., forcing them to sell WITN-TV to Gray, which was finalized on August 1, 1997. The Gwinnett Daily Post increased circulation in 1997 through a deal with Genesis Cable Communications to provide the paper to its metro Atlanta subscribers at Genesis's expense.[3]

In 1998, Gray started to expand beyond its Southeast region. As the company agreed to purchase the Busse Broadcasting Corporation, which owned KOLN, KGIN-TV and WEAU. Gray's ownership of a newspaper and TV station in Albany, Georgia while grandfathered was examined under the Media cross-ownership rule of the FCC due to this potential purchase.[3] WALB was thus sold to Liberty Corp.'s Cosmos Broadcasting in August 1998.[4][12]

In 2002, Robinson became Chairman and CEO, his son-in-law Hilton Howell vice chairman, Prather president/COO and Jim Ryan senior vice president. They had Gray purchase 14 Benedek Broadcasting stations while that company was in bankruptcy.[13]

Gray Television[]

Congressmember Mike Rogers being interviewed by Gray Television's Peter Zampa in 2020.

In 2006, the company spun off its five daily newspapers and wireless messaging business into the newly formed Triple Crown Media,[4][14] later (in 2010) renamed Southern Community Newspapers.[15] A new strategy of purchasing stations in college towns or capitals was put into place.[13]

The company had overpaid for a pair of stations and was over leveraged like many other station groups entering the Great Recession. Advertising revenues dropped. The twin problems caused its shares to trade at its lowest at 16 cents in 2008, thus the NYSE indicated they might delist the company. Loan covenants could have forced the company into default.[13] Robinson stepped down with Howell replacing him in 2008.[13]

On July 30, 2009, Gray was awarded a contract to manage seven Young Broadcasting-owned stations. Through December 31, 2012, Gray would earn $2.2 million and an opportunity to earn additional specified incentive fees if certain performance targets were exceeded.[16][17][18]

Prather left the company in 2013 and Howell took over the president title.[13] On November 4, 2013, Gray Television announced that it would purchase Yellowstone Holdings for $23 million, adding local stations: KGNS-TV, KGWN, KCWY, and KCHY-LP.[19] Three weeks later, on November 20, Gray announced it would purchase Hoak Media and Parker Broadcasting for $335 million, and North Dakota's Fox affiliate KNDX/KXND for $7.5 million. As part of the deal, stations KAQY, KHAS-TV, and KXJB, were proposed to be sold to Excalibur Broadcasting and operated by Gray under a "local marketing agreements".[20] On December 19, it was announced that stations KREX-TV and WMBB would be sold to Nexstar Broadcasting Group, while KFQX would be sold to Mission Broadcasting.[21] On March 25, 2014, Prime Cities Broadcasting, owner of KNDX/KXND, requested that the FCC dismiss the sale of KNDX/KXND to Excalibur.[22]

The sale was completed on June 13, 2014. However, some stations were forced to go off the air and their programming was moved to a multicast stream on adjacent channels, due to some stations being unable to receive regulatory approval, after the FCC's ruling on joint sales agreements. Those silent stations would then be sold off to minority interest, pending FCC approval.[23][24]

On July 24, 2014, SJL Broadcasting announced that it would sell WJRT-TV and WTVG to Gray, for $128 million.[25][26] The sale was completed on September 15.[27]

In July 2015, Gray closed its accounting and human resources offices in Albany (housed in the same building as The Albany Herald), combining them with the corporate offices in Atlanta.[4]

In September 2015, Gray announced that it would acquire the television and radio stations of Schurz Communications for $442.5 million.[28][29] It also purchased KCRG-TV in Cedar Rapids, Iowa from the locally owned Gazette Company, who owned the station from its sign-on in 1953.[30][31]

In January 2016, Gray Television opened a national news bureau in Washington, D.C., led by former APTV journalist Jacqueline Policastro. The bureau was designed to provide enhanced coverage of national political issues for Gray's local stations.[32][33]

On May 13, 2016, Gray announced that it would acquire WDTV and WVFX in Clarksburg, West Virginia from Withers Broadcasting for $26.5 million.[34] On June 3, 2016, it was announced that Gray would acquire two stations that were spun-off from the Nexstar-Media General merger; KWQC-TV in Davenport, Iowa and WBAY-TV in Green Bay, Wisconsin for $270 million.[35][36] On February 16, 2017, Gray announced that it will acquire WABI-TV in Bangor, Maine and WCJB-TV in Gainesville, Florida from Diversified Communications for $85 million.[37] On May 4, 2017, Gray announced its intent to acquire WCAX-TV in Burlington, Vermont from Mount Mansfield Television for $29 million.[38][39]

In April 2017, Gray Television filed a lawsuit against Nick Prueher and Joe Pickett, founders of the Found Footage Festival, for fraud and copyright infringement, after having booked an appearance on the morning show of a Gray station as a fake strongman act, "Chop and Steele", and utilizing the footage during their show. The parties later agreed to a settlement.[40][41]

On May 21, 2018, Gray Television entered into an agreement to acquire KNHL from Legacy Broadcasting for $475,000. Gray intended to turn KNHL into a satellite of its NBC affiliate KSNB-TV.[42]

On June 25, 2018, Gray Television announced its intent to acquire Raycom Media for $3.65 billion, pending regulatory approval. The combined company would be led by Raycom's current president and CEO Pat LaPlatney, with current Gray CEO Hilton Howell acting as executive chairman and co-CEO. The acquisition, which Gray expected to close in late 2018, would give Gray 142 stations in 92 markets, making Gray the third-largest owner of television stations in the United States, with a total market share of 24%.[43][44][45]

Although Gray foresaw that the acquisition would receive regulatory approval quickly, due to limited market overlap between the two companies and its still-relatively low total market reach post-acquisition. Gray would divest nine stations in markets where Gray and Raycom both already owned stations, including WTNZ, WTOL, KXXV, WTXL, WFXG, KWES-TV, WPGX, WSWG, and WDFX-TV.[45] The sale was approved by the FCC on December 20, 2018.[46][47][48] The deal was completed on January 2, 2019.[49][50]

Gray announced on April 24, 2019 a joint venture with Grand Old Opry Entertainment Group, a subsidiary of Ryman Hospitality Properties, a former owner of The Nashville Network. The services will consist of a broadcast diginet and an OTT streaming platform. The joint venture will be based in Nashville under General Manager Drew Riefenberger. Gray will contribute distribution and marketing capabilities, multicast knowledge and affiliate Gray TV stations.[51] The Circle TV network made its launch on January 1, 2020.[52]

On February 1, 2021, Gray Television announced its intent to acquire all Quincy Media's broadcasting properties for $925 million in cash. To comply with federal regulators, Gray would divest Quincy stations in Tucson; Harrisburg, Illinois; Waterloo/Cedar Rapids, Iowa; and Madison, La Crosse, and Wausau in Wisconsin over to Allen Media Group.[53] Gray's acquisition of Quincy Media was completed on August 2.[54] On May 3, 2021, Gray announced plans to buy the television division of Meredith Corporation for $2.7 billion. If approved, Gray would sell WJRT-TV to acquire competing station WNEM-TV, owned by Meredith.[55] It is revealed that Allen Media Group would purchase WJRT-TV in Flint for $70 million.[56]

Assets[]

Stations[]

Main article: List of stations owned or operated by Gray Television

Management of Young Broadcasting stations[]

On July 22, 2009, a New York bankruptcy judge approved a plan transferring ownership of Young Broadcasting and its stations to the company's secured lenders. The plan included Gray Television coming in as an outside party to advise on the operations of Young-owned stations in seven markets through December 2012. The new Young Broadcasting still held the final say on overall operations for their stations, including programming and personnel.[16][18]

The former Young-owned stations managed by Gray Television include:

  • WKRN-TV in Nashville, Tennessee
  • WTEN in Albany, New York; repeater WCDC-TV in Adams, Massachusetts; and a SSA with WXXA-TV
  • WRIC-TV in Richmond, Virginia
  • WBAY-TV in Green Bay, Wisconsin
  • KWQC-TV in Davenport, Iowa
  • KELO-TV in Sioux Falls, South Dakota and its translators throughout South Dakota
  • KLFY-TV in Lafayette, Louisiana

Young Broadcasting would retain ownership of all its stations, including three stations that Gray would not operate: KRON-TV in San Francisco, California, WATE-TV in Knoxville, Tennessee, and WLNS-TV in Lansing, Michigan, the latter two due to Gray already owning stations in those markets. Gray considered the possibility of purchasing the Young stations if the group went on the market.[57]

The agreement ended without any further extensions on December 31, 2012, and Young agreed to a merger with Media General in mid-2013. Gray would eventually purchase KWQC and WBAY outright when Nexstar Broadcasting Group acquired Media General in 2017, as Nexstar already owned WHBF-TV and WFRV-TV in each market.[35][36] Gray would also re-enter the Richmond market when it bought WWBT in 2019, following its merger with Raycom Media.[45]

Washington News Bureau[]

By January 20, 2016, Gray had set up their Washington News Bureau by Jacqueline Policastro to enable stations to get interviews with U.S. Senators and Representatives serving their communities. The bureau cooperates with Lilly Broadcasting's Washington bureau, previously started by Policastro, and is located at the NBC News Capitol Hill Bureau, 400 N. Capitol Street.[33] In February 2019, Gray announced that award-winning journalist Greta Van Susteren has joined the company as its Chief National Political Analyst. Gray then announced in April 2019 Greta Van Susteren as host of a Sunday morning syndicated show, , which was launched in September 2019.[58]

References[]

  1. ^ "Gray Television, Atlanta". TVNewsCheck. Retrieved July 10, 2018.
  2. ^ "Gray Television SEC Filing". Gray Television.
  3. ^ Jump up to: a b c d e f g h i j k "Gray Communications Systems, Inc. History". International Directory of Company Histories. St. James Press. 1999. Archived from the original on September 23, 2016. Retrieved September 21, 2016.
  4. ^ Jump up to: a b c d e f g h "Gray Television consolidating offices, leaving Albany". The Albany Herald. Retrieved July 10, 2018.
  5. ^ Jump up to: a b c "SEC Filing 10-K (1999)". Retrieved July 10, 2018.
  6. ^ Jump up to: a b c "SEC Filing 10-K (2002)". Retrieved July 10, 2018.
  7. ^ Jump up to: a b c "SEC Filing 10-K (2005)". Retrieved July 10, 2018.
  8. ^ Jump up to: a b c d e "SEC Filing 10-K (2010)". Retrieved July 10, 2018.
  9. ^ Jump up to: a b c d e "SEC Filing 10-K (2015)". Retrieved July 10, 2018.
  10. ^ Jump up to: a b "SEC Filing 10-K (2017)". Retrieved July 10, 2018.
  11. ^ "SEC Filing 10-K (2018)". Retrieved April 26, 2019.
  12. ^ "Company Briefs". New York Times. August 4, 1998. Archived from the original on March 5, 2017. Retrieved September 22, 2016.
  13. ^ Jump up to: a b c d e Colman, Price (January 19, 2016). "Gray: Strong Stations, Smart Operations". Executive Outlook. TVNewsCheck. pp. 1–2. Archived from the original on May 13, 2018. Retrieved September 22, 2016.
  14. ^ "Atlanta-based TV-station operator to spin off newsletter, wireless units". Atlanta Journal-Constitution. 4 August 2005. Archived from the original on 10 June 2014. Retrieved 9 August 2013 – via HighBeam Research.
  15. ^ "Daily Post's parent company changes name". Gwinnett Daily Post. March 5, 2010. Retrieved August 9, 2013.
  16. ^ Jump up to: a b "Banks' Bid on Young Stations Clears Hurdle" Archived 2010-06-23 at the Wayback Machine, from broadcastingcable.com, 7/22/2009
  17. ^ "Gray to manage most Young stations" Archived 2009-07-30 at the Wayback Machine, from rbr.com, 7/22/2009
  18. ^ Jump up to: a b Who's Really Running Young Broadcasting?" from tvnewscheck.com, 2/1/2011
  19. ^ "Gray Buying Yellowstone Stations". TVNewsCheck. Archived from the original on 4 November 2013. Retrieved 4 November 2013.
  20. ^ "Gray Buying Hoak, Prime Stations For $342.5M". TVNewsCheck. Archived from the original on 2 December 2013. Retrieved 20 November 2013.
  21. ^ Gray Sell Grand Junction Duop To Nexstar Archived 2013-12-19 at the Wayback Machine, "TVNewsCheck", 19 December 2013
  22. ^ Paxson, Ann Thomas (March 25, 2014). "Re: Prime Cities Broadcasting, Inc. Request for Dismissal of Group Application for Assignment of Broadcast Station License(s)…" (PDF). CDBS Public Access. Federal Communications Commission. Archived from the original on March 27, 2014. Retrieved March 26, 2014.
  23. ^ Gray closes Hoak deal; completes refinancing. Archived 2014-07-29 at the Wayback Machine, rbr.com, Retrieved 13 June 2014.
  24. ^ Press Release Archived 2014-07-14 at the Wayback Machine from Gray Television, 13 June 2014
  25. ^ "Gray Buys Stations in Flint, Toledo For $128M". TVNewsCheck. 24 July 2014. Archived from the original on 30 July 2014. Retrieved 24 July 2014.
  26. ^ Baird, Kirk (29 August 2014). "TV in the news Channels 24, 13 expanding newscasts; CW13 to replace WT05". The Toledo Blade. Archived from the original on 5 September 2014. Retrieved 31 August 2014.
  27. ^ Gray Closes on Flint, Toledo Station Buys Archived 2014-09-16 at the Wayback Machine, TVNewsCheck, Retrieved 15 September 2014
  28. ^ "Schurz Communications to sell WSBT and other TV, radio stations". South Bend Tribune. September 14, 2015. Retrieved September 14, 2015.
  29. ^ Kuperberg, Jonathan (September 14, 2015). "Gray Acquiring TV, Radio Stations from Schurz for $442.5 Million". Broadcasting & Cable. Archived from the original on September 17, 2015. Retrieved September 14, 2015.
  30. ^ "Press Releases". Gray Television. Archived from the original on 2016-05-28.
  31. ^ "KCRG-TV9 sold to Gray Television", KCRG.com, Cedar Rapids, Iowa: Gazette Communications, September 1, 2015, archived from the original on September 3, 2015, retrieved September 1, 2015
  32. ^ "Gray TV Launches DC News Bureau". Adweek. Retrieved 2018-06-25.
  33. ^ Jump up to: a b McAdams, Deborah D. (February 2, 2015). "Gray Opens Washington, D.C. News Bureau". TV Technology. NewBay Media. Archived from the original on September 23, 2016. Retrieved September 21, 2016.
  34. ^ "Gray Buying WDTV-WVFX Clarksburg, WV". TVNewsCheck. May 13, 2016. Archived from the original on May 13, 2018. Retrieved May 13, 2016.
  35. ^ Jump up to: a b "Gray Buying Two Nexstar Spinoffs For $270M". TVNewsCheck. Archived from the original on 6 August 2017. Retrieved 3 June 2016.
  36. ^ Jump up to: a b Marszalek, Diana (2016-06-03). "Gray Buys Nexstar Stations in Green Bay, Davenport". Broadcasting & Cable. NewBay Media, LLC. Archived from the original on 2016-06-05. Retrieved 2016-06-18.
  37. ^ Diana Marszalek, Gray Buys Diversified's Stations in Bangor, Gainesville[permanent dead link] Broadcasting & Cable, February 16, 2017
  38. ^ "Gray Buying CBS Affil WCAX Burlington, Vt". TVNewsCheck. Archived from the original on 3 August 2017. Retrieved 4 May 2017.
  39. ^ "WCAX sold to Gray Television". WCAX.com. Archived from the original on May 8, 2017. Retrieved May 4, 2017.
  40. ^ Saul, Emily (2017-04-13). "Pranksters sued by TV company over morning show antics". Archived from the original on 10 April 2018. Retrieved 9 April 2018.
  41. ^ "Meet the comedy duo who got sued for pranking the news". VICE News. Retrieved 2018-06-25.
  42. ^ Jacobson, Adam (2018-09-14). "Gray's Legacy Grows In Nebraska". Radio & Television Business Report. Retrieved 2018-10-28.
  43. ^ Hufford, Austen (2018-06-25). "Gray TV to Buy Raycom in $3.65 Billion Deal". Wall Street Journal. ISSN 0099-9660. Retrieved 2018-06-25.
  44. ^ Hayes, Dade (2018-06-25). "Gray Acquiring Raycom For $3.65B, Forming No. 3 Local TV Group". Deadline. Retrieved 2018-06-25.
  45. ^ Jump up to: a b c "Gray To Buy Raycom For $3.6 Billion". TVNewsCheck.com. Retrieved 2018-06-26.
  46. ^ "Memorandum Opinion and Order", Media Bureau, Federal Communications Commission, 20 December 2018, Retrieved 20 December 2018.
  47. ^ "FCC OK with Gray/Raycom Merger", Broadcasting & Cable, 20 December 2018, Retrieved 20 December 2018.
  48. ^ "FCC Approves Gray-Raycom Merger", TVNewsCheck, 20 December 2018, Retrieved 20 December 2018.
  49. ^ "Gray Receives Regulatory Approvals for Raycom Media and Divestiture Transactions", Gray Television, 20 December 2018, Retrieved 20 December 2018.
  50. ^ "Gray Completes Acquisitions for Raycom Media and Related Transactions", Gray Television, 2 January 2019, Retrieved 2 January 2019.
  51. ^ Jessell, Harry A. (April 24, 2019). "Gray Teams With Grand Ole Opry On TV Network". TV News Check. Archived from the original on April 27, 2019. Retrieved May 21, 2019.
  52. ^ Hudak, Joseph (December 11, 2019). "Circle TV Network Lineup Announced: Opry Live, Elizabeth Cook Series - Rolling Stone". TV News Check. Archived from the original on December 11, 2019. Retrieved December 23, 2019.
  53. ^ Goldsmith, Jill (February 1, 2021). "Gray Television Acquires Quincy Media For $925 Million In Cash". Deadline Hollywood. Retrieved February 2, 2021.
  54. ^ "Gray Television Closes Quincy Acquisition", Gray Television, 2 August 2021, Retrieved 2 August 2021.
  55. ^ Cynthia Littleton (3 May 2021). "Gray Television to Acquire Meredith TV Stations for $2.7 Billion". Variety.
  56. ^ Hayes, Dade (2021-07-14). "Allen Media Group Pays $70M To Acquire Gray Television's WJRT, An ABC Affiliate In Michigan". Deadline. Retrieved 2021-08-24.
  57. ^ "Gray Sees Young Stations As Possible Buy", from tvnewscheck.com, 3/1/2011
  58. ^ Johnson, Ted (2019-04-08). "Greta Van Susteren to Launch 'Full Court Press' for Gray Television". Variety. Retrieved 2019-09-06.

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