Gray Media and The E.W. Scripps Company have agreed to a significant exchange of television stations across five markets. This strategic move will result in the creation of new duopolies for both companies, promising enhanced operational efficiency and a strengthened commitment to local programming.
“The local broadcasters anticipate these transactions will give them the market scale and depth to strengthen their financial durability, in turn allowing them to preserve and deepen public service to their communities with essential local news and sports programming,” the joint announcement states.
Gray will acquire Scripps’ WSYM (Fox) in Lansing, Michigan (DMA 113), and KATC (ABC) in Lafayette, Louisiana (DMA 125). The addition of WSYM will create a duopoly with Gray’s existing WILX (NBC) in Lansing, while KATC will expand Gray’s presence in the Southeast.
“We are very pleased to be executing a successful set of station swaps with Scripps that brings great value to both companies,” said Gray President and Co-CEO Pat LaPlatney. “At Gray, due to the strategic nature of these two acquisitions and the benefits to our operations, we anticipate expanding the news staff and hours of live local newscasts on both stations soon after closing the acquisitions.”
Scripps will acquire Gray’s KKTV (CBS) in Colorado Springs, Colorado (DMA 86), KKCO (NBC) and KJCT-LP (ABC) in Grand Junction, Colorado (DMA 187), and KMVT (CBS) and KSVT-LD (Fox) in Twin Falls, Idaho (DMA 189). These acquisitions strengthen Scripps’ presence in the West.
“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. “The resulting efficiencies will allow us to further invest in our connection to our communities, offering even richer coverage of these neighborhoods and regions.”
The swap involves an even exchange of assets, with no cash consideration changing hands. The companies anticipate closing the deal in the fourth quarter of 2024, pending regulatory approvals.
“The regulatory approvals will require certain waivers of outdated local ownership restrictions,” the statement noted, referencing efforts to deregulate the broadcasting industry. The FCC's review of ownership guidelines could significantly impact the future of such station swaps.
While proponents highlight cost savings and enhanced local programming, critics express concerns about reduced distinct voices and potential job losses. The statement did not address potential job cuts resulting from the consolidations.
“The parties intend to work closely with regulators, employees and other stakeholders to obtain the requisite approvals and to facilitate the smooth transitions of these stations to new ownership,” the statement concludes.