LONDON, UK / ACCESSWIRE / June 27, 2018 / If you want access to our free research report on Gray Television, Inc. (NYSE: GTN) ("Gray"), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=GTN as the Company's latest news hit the wire. On June 25, 2018, the Company announced that it has inked a deal to buy Raycom Media, Inc. ("Raycom"), which is an employee-owned Company, for approximately $3.647 billion, consisting of $3.547 billion in enterprise value and $100 million of Raycom cash. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Gray Television most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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The transaction will create the single largest owner of top-rated local television stations and digital assets in the country. The deal marks Gray's transformation from a small, regional broadcaster into a leading media Company with nationwide scale based on high-quality stations with exceptional talent in attractive markets.

Deal Details

  • The purchase consideration will consist of $2.85 billion in cash, $650 million in a new series of preferred stock, and 11.5 million shares of Gray common stock.
  • Following the closing of the deal, Gray's shareholders will retain 89% of the economic ownership of the Company.
  • Wells Fargo has underwritten the debt financing portion of the transaction in the amount of $2.525 billion. The deal will add to free cash flow on a per-share basis.
  • Following the acquisition, Raycom's President and Chief Executive Officer (CEO), Pat LaPlatney, will become Gray's President and Co-CEO. Additionally, LaPlatney and Raycom's former President and CEO, Paul McTear, both of whom are currently members of Raycom's Board of Directors, will join Gray's Board of Directors.
  • The transaction, expected to close in Q4 2018, is subject to customary closing conditions and regulatory approvals.
  • The combined Company will have 142 full-power television stations in 92 markets, and will be the third largest portfolio of stations and markets in the United States. The combined Company will boost Gray's station portfolio to 24%.
  • Gray will acquire several additional Raycom businesses including Raycom Sports, Tupelo Raycom, RTM Productions, and Broadview Media.
  • On July 01, 2018, Bob Smith will become its Chief Operating Officer (COO) and Nick Waller will become its Chief Administrative Officer. Currently, Smith and Waller serve as Co-COOs.

Raycom to Sell CNHI or PureCars

Raycom has also initiated processes to sell or spin off Community Newspaper Holdings, Inc., which owns community newspapers and information products including over 100 titles located in 23 states, as well as PureCars, which is a digital ad platform for the automotive industry. As a result, Gray will not acquire either CNHI or PureCars as part of this transaction.

About Raycom Media, Inc.

Raycom is an employee-owned Company, and is one of United States' largest privately-owned local media Companies and owns and/or provides services for 65 television stations and 2 radio stations in 44 markets located in 20 states.

About Gray Television, Inc.

Established in 1897, Gray is a television broadcast Company headquartered in Atlanta, Georgia, that owns and operates television stations and leading digital assets in markets throughout the United States. The Company currently owns and/or operates television stations across 51 television markets that collectively broadcast over 180 program streams including 36 channels.

Stock Performance Snapshot

June 26, 2018 - At Tuesday's closing bell, Gray Television's stock surged 11.11%, ending the trading session at $16.50.

Volume traded for the day: 4.96 million shares, which was above the 3-month average volume of 1.21 million shares.

Stock performance in the last month - up 44.74%; previous three-month period - up 26.44%; and past twelve-month period - up 20.88%

After yesterday's close, Gray Television's market cap was at $1.50 billion.

Price to Earnings (P/E) ratio was at 9.95.

The stock is part of the Services sector, categorized under the Broadcasting - TV industry. This sector was up 0.3% at the end of the session.

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