Atlanta-based Gray Television announced Wednesday it and Excalibur Broadcasting, a newly formed company, are acquiring 20 network-affiliated TV stations from Hoak Media LLC and Parker Broadcasting Inc. for $335 million in cash.
The stations are in South Dakota, North Dakota, Louisiana, Nebraska, Colorado and Florida. The properties in Colorado and Florida, however, will be sold eventually to an independent third party due to regulatory requirements.
The companies said Excalibur, which is owned and operated by Don Ray, a former regional vice president at Gray, separately will acquire two network-affiliated stations from Prime Cities Broadcasting Inc. for $7.5 million in cash. Gray has no ownership stake in Excalibur.
After the deals are completed, Gray said it will operate TV stations in 39 markets, representing 123 channels, the majority affiliated with either ABC, CBS, NBC or Fox.
“Gray’s existing stations will make the acquired stations stronger, while the acquired stations will make our existing stations better,” Gray President and Chief Executive Officer Hilton Howell said in announcing the deals.
Gray is acquiring ABC affiliates KSFY, KABY and KPRY in Sioux Falls, S.D.; NBC affiliates KFYR, KMOT, KUMV and KQCD in Minot-Bismarck-Dickinson and KVLY in Fargo-Valley City, N.D.; CBS affiliate KNOE in Monroe-El Dorado and NBC/CBS-affiliate KALB in Alexandria, La.; CBS affiliates KREX, KREY and KREG in Grand Junction-Montrose, Colo.; ABC affiliate WMBB in Panama City, Fla; and two stations in North Platte, Neb.: NBC affiliate KNOP in North Platte and Fox affiliate KIIT-LP.
Excalibur will acquire NBC affiliate KHAS in Lincoln-Hastings-Kearney, Neb.; CBS affiliate KXJB in Fargo-Valley City, ND.; ABC affiliate KAQY in Monroe-El Dorado, La.; and Fox affiliate KFQX in Grand Junction-Montrose, Colo. Excalibur also will acquire from Prime Cities KNDX and KXND, two Fox affiliates in Minot-Bismarck-Dickinson, ND.
Gray said it will also provide back-office services and limited programming for some of Excalibur’s acquisitions, and Gray said it could eventually acquire the Excalibur properties - in Lincoln, Fargo, Bismarck and Monroe – if allowed by law.
The deals are expected to close in the first or second quarter of 2014.
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