Tuesday, May 04, 2021

Gray Television Inc. (GTN)
Leapfrogs Into The “Super” Broadcast League

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.

Gains national scale.  The company will leap frog into the big leagues covering 36% of US TV households, without the UHF discount rule, upon the planned purchase of Meredith’s TV group. The purchase price of $2.7 billion represents 7.9 times blended 2019/2020 cash flow, after synergies, a reasonable price, in our view. The deal is expected to close year end 2021.


Move viewed favorably.  The Meredith stations dovetail nicely with the company’s existing stations and creates significant scale in many States, including Nevada, Arizona, Missouri, positioning it well for Political advertising. The company plans to sell only one overlap station in Flint, MI, to expedite regulatory approval, which is expected …

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.