Gray Buys Hoak Stations For $335M

handshakeThe TV station buying surge continues.

Midsize TV group Gray Television, based in Atlanta, Ga., will get 16 stations from Hoak Media and Parker Broadcasting -- giving Gray 123 channels in 39 markets, covering 7.3% of U.S. TV homes -- as part of an overall deal worth $335 million in cash.

TV stations going to Gray are based in South Dakota, North Dakota, Colorado, Louisiana and Florida.

Separately, Excalibur Broadcasting has agreed to acquire two Fox-affiliated television stations in one of the markets served by Hoak from Prime Cities Broadcasting.  

As a result of regulatory requirements, Gray will sell four of the stations located in Colorado and Florida to outside companies.

In addition, Excalibur has made an agreement where Gray will provide back-office services and programming to Excalibur's stations in the Lincoln, Fargo, Bismarck, and Monroe markets.

In mid-day trading, Gray’s stock soared 16% to $10.94.  

Since the start of the year, many TV stations deals have taken place. Gannett Co. -- the biggest U.S. newspaper publisher -- bought television company Belo Corp for $1.5 billion in June, while Tribune Co said in July it would buy 19 television stations from Local TV Holdings LLC for $2.73 billion.

Handshake photo from Shutterstock



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