On January 7, Illinois-based broadcast media operation Quincy Media Inc., owner of 24 over-the-air TV stations, confirmed that it was “considering” a sale of all of its assets.
Less than one month later, a buyer has emerged. And, it’s the entity that successfully merged with Raycom Media just over two years ago.
The radio assets in Quincy’s home market are included in the deal.
Gray Television has entered into an agreement to acquire Quincy Media, and it is signing off on a deal valued at $925 million in cash.
Upon closing, pending regulatory approval, Gray’s national TV household reach will grow to 25.4%, with Gray establishing a presence across 102 DMAs.
And, it points out, it will grab the No. 1-ranked TV station in 77 markets — citing Comscore average all-day ratings for calendar year 2020.
While Gray may be bragging about the ratings, the pending transaction is yet another transformative deal for an industry that will likely see further consolidation as costs associated with ATSC 3.0-powered NEXTGEN TV’s voluntary rollout over the next several years get closer scrutiny by mid-sized or small-sized broadcast companies with little opportunities for further revenue growth against added expenses.
According to Quincy, the transaction also includes ESPN Radio affiliate WGEM-AM 1440 and FM translator W255CY at 98.9 MHz in Quincy, Ill.; and News/Talk WGEM-FM 105.1 in Quincy.
Gray owns one other radio station: 100kw KTXC-FM 104.7 “La Ley” in Lamesa, Tex., serving the Odessa-Midland market. It gained the station, along with 100kw regional Mexican KEYU-FM 102.9 “Mundo FM” in Amarillo, Tex., through its merger with Raycom. Raycom gained ownership of the FMs in July 2015 as part of its $160 million purchase of Drewery Communications.
The Gray transaction does not include the Quincy Herald-Whig and Hannibal Courier Post newspapers, which are being sold separately, QMI confirmed.
In prepared comments released early Monday (2/1), Executive Chairman and co-CEO Hilton H. Howell Jr. said Gray was “honored and humbled to be selected by Quincy’s shareholders to acquire their terrific company.”
Howell added, “We are very excited to welcome their dedicated journalists, account executives, and technologists to the Gray family. With the addition of these professionals and their stations, Gray will become a stronger company with an even larger platform of high quality television stations to better serve the public interest first.”
Ralph M. Oakley, President/CEO of Quincy Media, Inc., added, “This was a difficult decision for our Board of Directors and shareholders. We have always put community service first and have served our viewers, listeners and readers with the best in news and public service. We have also taken a leadership role in trying to improve the economic development and quality of life in the places where we operate and, particularly, here in our hometown of Quincy.”
QMI and Gray expect a Q2 or Q3 2021 closing date.
Gray’s Quincy Deal: Six Market Spins, Including Tucson
In order for Gray Television’s proposed purchase of Quincy Media, Inc., six spin-off deals are proposed. One of the stations could be KVOA-4 in Tucson, a station Quincy recently acquired from the former Cordillera Communications.
More coverage here, from RBR+TVBR.
