Atlanta-based Gray Television, after 28 years, finally owns TV stations in Atlanta: CBS46 and Peachtree TV.
The deal officially closes Dec. 1.
Gray earlier this year announced it was purchasing the TV properties from Iowa-based Meredith Corp. for $2.85 billion. Those 17 local TV stations are in markets such as Phoenix Kansas City, Missouri; Nashville, Tennessee; and Portland, Oregon. It took several months to get proper regulatory approval, which is standard procedure.
Hilton Howell, chief executive officer for Gray, told The Atlanta Journal-Constitution that this deal now makes their company the second largest TV station owner in the country behind only Nexstar, covering 113 markets including almost all cities in Georgia. Most of its stations are in smaller markets.
“We’re thrilled,” Howell said, noting that the additional stations also provide them new or expanded coverage in Alabama (Mobile), South Carolina (Greenville), Connecticut (Hartford) and Massachusetts (Springfield), among others.
Under Meredith, Atlanta’s CBS46 (WGCL-TV) has languished largely in fourth place among the four local news operations in town for many years and has experienced unusually high managerial and staff changes.
“You’ll see a whole lot less turnover there,” Howell said. “I think what we will bring is very simple and important: direction. We are broadcasters first. The previous company focused on print and publishing. We don’t have any of those assets to divert us.”
He added: “I don’t consider GCL any kind of fix-up operation. They’re doing a great job.”
Gray Television, which has corporate offices in Brookhaven, has a sizable Washington, D.C., bureau which can help provide better coverage of legislators from Georgia, he said. They also have former Fox News host Greta Van Susteren as chief national political analyst.
“We have placed a tremendous investment in technology, digital distribution and digital sales,” Howell said.
Howell said he’s bullish on digital distribution of news as more people watch streaming services and spend less time watching traditional TV. “The advent of technology does not diminish ad views,” he asserted. “It just shifts where people are watching. I consider it a huge positive to the TV station business.”
At the same time, he noted, this is no longer a mom-and-pop business. Consolidation, he said, is the best way to survive.
Gray also purchased much of the old GM plant in Doraville earlier this year and dubbed the project the Assembly. On top of that, it scooped up the existing Third Rail film studios already on the property.
Howell said Gray plans to build at least 20 new soundstages for film and TV production there and have the first ones available for use in 12 months.
He also wants to add entertainment, hotel and restaurant options on site while selling off some of the existing property to developers to build homes and apartments which could then be used for filming as well.
“I’ve never been more excited,” Howell said. “We really look forward to growing in great depth in the Atlanta market.”
Gray, in its third quarter earnings report, said it generated $601 million ending Sept. 30, 2021, with a net loss of $30 million in net income. The company currently has a market capitalization of just under $2 billion.
