Gray Television Inc. (GTN) – Plenty Of Room For Acquisition Fueled Growth

Posted on by Admin

Tuesday, February 02, 2021

Gray Television Inc. (GTN)
Plenty Of Room For Acquisition Fueled Growth

Gray Television, Inc. operates as a television broadcast company in the United States. As of April 6, 2010, it operated 36 television stations in 30 markets, including 17 affiliated with CBS Inc.; 10 affiliated with the National Broadcasting Company, Inc.; 8 affiliated with the American Broadcasting Company (ABC); and 1 affiliated with FOX Entertainment Group, Inc. (FOX). The company also operated 39 digital second channels comprising 1 affiliated with ABC, 4 affiliated with FOX, 7 affiliated with CW Network, LLC, 18 affiliated with Twentieth Television, Inc., 2 affiliated with Universal Sports Network, and 7 local news/weather channels. Gray Television, Inc. was founded in 1897 and is headquartered in Atlanta, Georgia.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Plans purchase of Quincy. The $925 million acquisition fits nicely with the company’s strategy of smaller market TV stations that have leading market positions. The company plans to divest stations with markets that it currently overlaps, in order for a quick regulatory approval. The planned station sales are some of Quincy’s largest and more valuable markets, including Tucson, Madison, Paducah and Cedar Rapids. Management expects to close the transaction in Q2 or Q3 2021.

    Attractive purchase price.  The company expects to achieve $23 million in synergies and indicated that the purchase price is a compelling 6.9 times blended 2019/2020 cash flow, with synergies. We believe that the purchase price is reasonable for smaller market TV stations …



This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Leave a Reply