Gray Media, Inc. is an American publicly traded television broadcasting company based in Atlanta. Founded in 1946 by James Harrison Gray as Gray Communications Systems, the company is the third-largest television station operator in the United States by number of stations, owning or operating 180 stations across the United States in 113 markets. Its station base consists of media markets ranging from as large as Atlanta to one of the smallest markets, North Platte, Nebraska.
In terms of quantity and numerical total, Gray Media is the largest group owner and operator of NBC-affiliated stations (with a total of 64 affiliates), ahead of Nexstar Media Group and Tegna Inc., and the second-largest group owner and operator of ABC affiliates, behind Sinclair Broadcast Group.
History James H. Gray started his communication business in Albany, Georgia with the purchase of The Herald Publishing Company (a company founded in 1897 to promote The Albany Herald, a newspaper that started publication in 1891), in 1946 after he returned from World War II. The purchase included WALB radio. Gray launched WALB-TV in 1954. In 1960, Gray purchased WJHG-TV in Panama City, Florida, and followed it later in the decade with KTVE serving Monroe, Louisiana and southern Arkansas.
In 1986, Gray died, leaving his 50.5% share of the stock in a trust for his children with stipulation that they run the business together, sell their stock with each other or sell out together. It caused difficulties as two of the three wanted to sell, but the third was against the purchase. In 1991, to break the stalemate, the board of directors had the company purchase 25% of their shares.
Gray Communication Systems The company was then taken public on NASDAQ's small-cap market in the 2nd quarter 1992. The price per share dropped to $8. The company put itself, or any part, up for sale by the end of 1992. While the board of directors received about 40 offers, Bull Run Corporation eventually stepped in and purchased the remaining shares of the Gray siblings, who as part of the deal resigned from the board.
New management took over all three TV stations. Bull Run Corporation, primarily owned by J. Mack Robinson, decided to make Gray a Southeast regional media company, expanding its focus beyond the state of Georgia. Gray purchased two TV stations (WKYT-TV and WYMT-TV) from the failed and government-seized Kentucky Central Insurance Company in September 1994 after a court challenge to the sale by Kentucky Central builder Garvice Kincaid.
In 1994 and 1995, Gray purchased two newspapers, the Rockdale Citizen (acquired May 31, 1994) and Gwinnett Post-Tribune (acquired January 1995; quickly renamed Gwinnett Daily Post) and seven advertising weeklies. In 1995, the company moved its stock listing to the New York Stock Exchange. By this time, Robinson, directly or through Bull Run, owned 44% of the company's stock. Gray had started to focus on its TV station segment over the newspaper holding while TV produced more income and the newspapers' income were declining. Just months after doubling the Daily Posts staff, one third were laid off and a quarter of The Albany Heralds staff followed in January 1996. Newspaper leaders resigned during this period, from the corporate president in late 1995 to the Citizens editor and publisher.
Revenue and income (loss), by year(in millions of US dollars) Fiscalyear Revenue Net income (loss) 1994 $36.5 $2.8 1995 58.6 .9 1996 79.3 2.5 1997 103.5 (1.4) 1998 128.8 41.6 1999 143.9 (6.3) 2000 120.6 (6.2) 2001 106.4 (13.3) 2002 146.7 (27.8) 2003 243.0 14.0 2004 293.2 44.2 2005 261.5 3.3 2006 332.1 11.7 2007 307.2 (23.1) 2008 327.1 (202.0) 2009 270.3 (23.0) 2010 346.0 23.1 2011 307.1 9.0 2012 404.8 28.1 2013 346.2 18.2 2014 508.1 48.0 2015 597.3 39.3 2016 812.4 62.2 2017 882.7 261.9 2018 1,084.1 210.8 In 1996, Gray added additional TV stations while entering additional communication industry segments. In 1996, Fortune considered the company the nation's 81st fastest growing company, with a 48% growth rate, and as if to prove the point, Gray purchased WRDW-TV in January 1996. In September of the same year, a basket purchase from First American Media, Inc. earned the company two more TV stations, (WCTV and WVLT-TV), Satellite and Production Business Services, which was renamed Lynqx Communications and PortaPhone paging business.
In August and September 1996, Gray raised additional operating funds by various means. On August 20, KTVE was sold for cash and accounts receivable. The company issued and sold Class B common stock (through a public offering), senior subordinated notes and preferred stock in September. Also, a new bank credit facility was arranged. This brought the company total to $534.5 million in available funds with $409.5 million directly available.
Also in September 1996, Ralph Gabbard, the newly named president and CEO, died from a heart attack at age 50. Robinson, Bull Run's chair, took over as interim CEO and president with Bull Run CEO Robert Prather as interim executive vice-president, acquisitions.
With its additional funds, Gray continued purchasing in 1997 with two announcements in January and February. The company bought Gulflink Communications, Inc., a transportable satellite uplink business based in Baton Rouge, Louisiana, in April 1997 to go along with Lynqx. With Raycom Media acquiring a station from AFLAC Broadcast Group, Inc., forcing them to sell WITN-TV to Gray, which was finalized on August 1, 1997. The Gwinnett Daily Post increased circulation in 1997 through a deal with Genesis Cable Communications to provide the paper to its metro Atlanta subscribers at Genesis's expense.
In 1998, Gray started to expand beyond its Southeast region. As the company agreed to purchase the Busse Broadcasting Corporation, which owned KOLN, KGIN-TV and WEAU. Gray's ownership of a newspaper and TV station in Albany, Georgia, while grandfathered was examined under the media cross-ownership rule of the FCC due to this potential purchase. WALB was thus sold to Liberty Corp.'s Cosmos Broadcasting in August 1998.
In 2002, Robinson became chairman and CEO, his son-in-law Hilton Howell vice chairman, Prather president/COO and Jim Ryan senior vice president. They had Gray purchase 14 Benedek Broadcasting stations while that company was in bankruptcy.
Gray Television
In 2006, the company spun off its five daily newspapers and wireless messaging business into the newly formed Triple Crown Media, later (in 2010) renamed Southern Community Newspapers. A new strategy of purchasing stations in college towns or capitals was put into place.
The company had overpaid for a pair of stations and was over leveraged like many other station groups entering the Great Recession. Advertising revenues dropped. The twin problems caused its shares to trade at its lowest at 16 cents in 2008, thus the NYSE indicated they might delist the company. Loan covenants could have forced the company into default. Robinson stepped down with Howell replacing him in 2008.
On July 30, 2009, Gray was awarded a contract to manage seven Young Broadcasting-owned stations. Through December 31, 2012, Gray would earn $2.2 million and an opportunity to earn additional specified incentive fees if certain performance targets were exceeded."Banks' Bid on Young Stations Clears Hurdle" . Broadcasting & Cable. July 22, 2009."Gray to manage most Young stations" . Radio & Television Business Report. July 22, 2009.Who's Really Running Young Broadcasting?". TV News Check. February 1, 2011.
Prather left the company in 2013 and Howell took over the president title. On November 4, 2013, Gray announced that it would purchase Yellowstone Holdings for $23 million, adding local stations: KGNS-TV, KGWN, KCWY and KCHY-LP. Three weeks later, on November 20, Gray announced it would purchase Hoak Media and Parker Broadcasting for $335 million, and North Dakota's Fox affiliate KNDX/KXND for $7.5 million. As part of the deal, stations KAQY, KHAS-TV and KXJB, were proposed to be sold to Excalibur Broadcasting and operated by Gray under a "local marketing agreements". On December 19, it was announced that stations KREX-TV and WMBB would be sold to Nexstar Broadcasting Group, while KFQX would be sold to Mission Broadcasting.Gray Sell Grand Junction Duop To Nexstar , "TV News Check". December 19, 2013 On March 25, 2014, Prime Cities Broadcasting, owner of KNDX/KXND, requested that the FCC dismiss the sale of KNDX/KXND to Excalibur.
The sale was completed on June 13, 2014. However, some stations were forced to go off the air and their programming was moved to a multicast stream on adjacent channels, due to some stations being unable to receive regulatory approval, after the FCC's ruling on joint sales agreements. Those silent stations would then be sold off to minority interest, pending FCC approval.Gray closes Hoak deal; completes refinancing. . Radio & Television Business Report. Retrieved June 13, 2014.Press Release . Gray Television. Retrieved June 13, 2014.
On July 24, 2014, SJL Broadcasting announced that it would sell WJRT-TV and WTVG to Gray, for $128 million. The sale was completed on September 15.Gray Closes on Flint, Toledo Station Buys . TV News Check. Retrieved September 15, 2014.
In July 2015, Gray closed its accounting and human resources offices in Albany (housed in the same building as The Albany Herald), combining them with the corporate offices in Atlanta.
In September 2015, Gray announced that it would acquire the television and radio stations of Schurz Communications for $442.5 million. It also purchased KCRG-TV in Cedar Rapids, Iowa, from the locally owned Gazette Company, who owned the station from its sign-on in 1953.
In January 2016, Gray opened a national news bureau in Washington, D.C., led by former APTV journalist Jacqueline Policastro. The bureau was designed to provide enhanced coverage of national political issues for Gray's local stations.
On May 13, 2016, Gray announced that it would acquire WDTV and WVFX in Clarksburg, West Virginia, from Withers Broadcasting for $26.5 million. On June 3, 2016, it was announced that Gray would acquire two stations that were spun-off from the Nexstar-Media General merger; KWQC-TV in Davenport, Iowa, and WBAY-TV in Green Bay, Wisconsin, for $270 million. On February 16, 2017, Gray announced that it would acquire WABI-TV in Bangor, Maine, and WCJB-TV in Gainesville, Florida, from Diversified Communications for $85 million.Marszalek, Diana (February 16, 2017). Gray Buys Diversified's Stations in Bangor, Gainesville Broadcasting & Cable. On May 4, 2017, Gray announced its intent to acquire WCAX-TV in Burlington, Vermont, from Mount Mansfield Television for $29 million.
In April 2017, Gray filed a lawsuit against Nick Prueher and Joe Pickett, founders of the Found Footage Festival, for fraud and copyright infringement, after having booked an appearance on the morning show of a Gray station as a fake strongman act, "Chop and Steele", and utilizing the footage during their show. The parties later agreed to a settlement.
On May 21, 2018, Gray entered into an agreement to acquire KNHL from Legacy Broadcasting for $475,000. Gray intended to turn KNHL into a satellite of its NBC affiliate KSNB-TV.
On June 25, 2018, Gray announced its intent to acquire Raycom Media for $3.65 billion, pending regulatory approval. The combined company would be led by Raycom's current president and CEO Pat LaPlatney, with current Gray CEO Hilton Howell acting as executive chairman and co-CEO. The acquisition, which Gray expected to close in late 2018, would give Gray 142 stations in 92 markets, making Gray the third-largest owner of television stations in the United States, with a total market share of 24%.