Yesterday, Gray Television announced its intent to purchase rival TV station owner, Raycom Media Inc, for $3.65B ($2.85B in cash, the rest in stock).
You may not hear these companies’ names thrown around every day, but if the sale is approved, the combined conglomerate will be the 3rd-largest TV station owner in America, and reach 1 out of every 4 households.
The big dogs of local TV
Gray and Raycom both serve small and midsize markets — if Gray wins its bid, it will own 142 TV stations in 92 markets across the US.
Right now, there’s a civil war going on between TV station owners (like Gray and Raycom), and broadcast networks (which make the content); consolidating gives them more leverage when it comes to dealmaking.
And luckily for them, the FCC is making it easier
Back in November, the US Federal Communications Commission voted against regulating the consolidation of media companies.
It’s big news for traditional outlets, who are grappling with declining TV subscription numbers and competing with streaming services for market share.