News Summary
Gray Media has announced the acquisition of ten television stations from Byron Allen’s Allen Media Group for $171 million. This strategic move will expand Gray’s market presence in Columbus-Tupelo, Terre Haute, and West Lafayette. The deal is set to create new duopolies and enhance local news, weather, and sports programming capabilities. Although facing a decline in revenue, Gray Media is optimistic about optimizing operations and improving its service offerings as it moves toward closing this deal, pending regulatory approval.
Atlanta, Georgia – Gray Media has announced a significant deal to acquire ten television stations from Byron Allen’s Allen Media Group for $171 million. This strategic acquisition aims to broaden Gray Media’s reach into three new markets: Columbus-Tupelo, Mississippi; Terre Haute, Indiana; and West Lafayette, Indiana.
The transaction encompasses the following stations:
– WAAY (ABC) in Huntsville, AL
– WSIL (ABC) in Paducah-Cape Girardeau-Harrisburg
– WEVV (CBS/FOX) in Evansville, IN
– WFFT (FOX) in Ft. Wayne, IN
– WCOV (FOX) in Montgomery, AL
– KADN (FOX/NBC) in Lafayette, LA
– WTVA (ABC/NBC) in Columbus-Tupelo, MS
– WREX (NBC) in Rockford, IL
– WTHI (CBS/FOX) in Terre Haute, IN
– WLFI (CBS) in West Lafayette, IN
This acquisition is expected to create new duopolies in certain markets, allowing Gray Media to enhance its capabilities of providing local news, weather, and sports programming. Such expansions can significantly improve the company’s market presence and competitiveness in the television broadcasting sector.
The deal requires regulatory approval, which may involve seeking waivers for the Federal Communications Commission (FCC) local ownership rules. The acquisition is projected to close in the fourth quarter of 2025.
Gray Media currently operates in 113 television markets nationwide, reaching roughly 37% of the U.S. television households. Despite its strong market presence, the company reported challenges, including a 7% decline in total revenue for the second quarter of 2025 compared to the same period in 2024, amounting to $772 million.
The financial report detailed that core advertising revenue fell to $361 million, reflecting a 3% decrease, while retransmission consent revenue dropped to $369 million, down 1%. A notable decline in political advertising revenue, which dropped 81% to $9 million, was attributed to the off-year in the political advertising cycle. The company faced a net loss of $69 million for Q2 2025, a stark contrast to the net income of $9 million reported during the same quarter in 2024. Additionally, adjusted EBITDA fell to $169 million, down from $225 million year-over-year.
To navigate these financial challenges, Gray Media has executed a private offering of $900 million in senior secured second lien notes due in 2032, utilizing the proceeds to refinance existing debts. The company also expanded its Revolving Credit Facility to $750 million with an extended maturity date to December 1, 2028.
Management of Gray Media expressed optimism about enhancing local content and optimizing operations. They acknowledged the cyclical nature of political advertising as a contributing factor to the recent financial losses.
Looking ahead to Q3 2025, Gray Media expects a further decline in core advertising revenue compared to the same period in 2024, projecting total revenue guidance to be between $735 million and $750 million.
This latest acquisition reflects Gray Media’s commitment to growing its broadcasting footprint and improving its service offerings, even amidst recent financial hurdles.
Deeper Dive: News & Info About This Topic
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- Wikipedia: Television broadcasting
- Google Search: Gray Media Group
- Google Scholar: Television advertising
- Encyclopedia Britannica: Television
- Google News: Gray Media
Author: STAFF HERE AUGUSTA WRITER
AUGUSTA STAFF WRITER The AUGUSTA STAFF WRITER represents the experienced team at HEREAugusta.com, your go-to source for actionable local news and information in Augusta, Richmond County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Arts in the Heart Festival, Westobou Festival, and Masters Week. Our coverage extends to key organizations like the Augusta Metro Chamber of Commerce and Greater Augusta Arts Council, plus leading businesses in manufacturing and healthcare that power the local economy such as Textron Specialized Vehicles, Cardinal Health, and Nutrien. As part of the broader HERE network, including HEREAtlanta.com and HERESavannah.com, we provide comprehensive, credible insights into Georgia's dynamic landscape.
