To facilitate regulatory approvals for its approximately $2.825 billion purchase of Meredith Local Media, announced on May 3, Gray Television agreed to divest an ABC affiliate “to an independent third-party no later than the closing of the Meredith acquisition.”
At the time, RBR+TVBR asked if it was Allen Media Group.
It is now known that this guess was the correct one.
In announcing his company’s April 29 agreement to purchase Gray Television’s Quincy Media, Inc., spins for $380 million, AMG owner Byron Allen said at the time, “We plan to invest approximately $10 billion to acquire more ABC, CBS, NBC, and FOX television stations over the next two years with the goal of being the largest broadcast television group in America.”
Flush with cash, AMG is starting its buying spree by picking up WJRT-12 in Flint, Mich., from Gray.
WJRT covers the Saginaw area as well, giving it a $70 million valuation.
Closing is expected between now and the end of 2021, prior to closing of the Gray/Meredith Local Media transaction.
WJRT General Manager Pete Veto won’t remain in his role. Gray confirmed that he will remain with the company once the station’s sale is complete, taking a new position that Gray will announce at a later date.
Upon closing, Allen Media Group will own and operate 24 local television stations in 20
markets, as well as 12 television networks including The Weather Channel and the free-streaming service Local Now.
“Having to divest WJRT-TV, which we have proudly owned for the past seven years, in order to facilitate our purchase of Meredith’s television stations is bittersweet,” said Gray Executive Chairman and CEO Hilton H. Howell. “The wonderful WJRT-TV staff has done an exemplary job serving the Flint-Saginaw community, and we are disappointed to lose them. Nevertheless, we are excited that Byron Allen and his team will follow us as the next
dedicated stewards of this fine television station.”
Allen added, “We are delighted to win the process to add this wonderful local television station and its great employees to the fast-growing Allen Media Group family. Over the past year-and-a-half, we’ve invested close to $1 billion to acquire best-in-class, top-tier, broadcast network affiliates and we plan to invest approximately ten billion dollars to acquire more ABC, CBS, NBC, and FOX television stations over the next two years with the goal of being the largest broadcast television group in America. All of our media assets will
work in concert to amplify our free-streaming service, Local Now.”
