Gray Television to buy Raycom Media in $3.6B deal
Broadcasting company Gray Television on Monday said it will acquire privately held Raycom Media in a cash-and-stock deal valued at $3.65 billion.
The transaction 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, the companies said.
The combined company will have 142 full-power television stations serving 92 markets, the third largest portfolio of stations and markets in the United States, Gray said in a statement.
Gray has a market valuation of about $1.1 billion.
Raycom President and CEO Pat LaPlatney will become Gray's president and co-chief executive officer, and current Gray CEO Hilton Howell will become executive chairman and co-chief executive officer after the deal closes.
Wells Fargo Securities served as financial adviser and Cooley LLP and Jones Day served as legal counsel for Gray.
Stonebridge Capital served as financial adviser and Robinson Bradshaw and Covington & Burling served as legal counsel for Raycom.
The transaction is expected to close in the fourth quarter of 2018.
(Reporting by Munsif Vengattil in Bengaluru; Editing by Shailesh Kuber)