Lafayette TV station KATC will be sold to Gray Media in an agreement between Gray and Scripps to swap television stations across five mid-sized and small markets. The goal of the swap is the creation of new duopolies for each group, according to a news release from Scripps.
Gray will acquire Scripps' KATC (ABC) in Lafayette, and WSYM (Fox) in Lansing, Michigan. The acquisition of WSYM will create a duopoly in Lansing, where Gray owns WILX (NBC), and the acquisition of KATC will complement Gray's strong presence in the Southeast, including all other markets in Louisiana, according to the release.
"We are very pleased to be executing a successful set of station swaps with Scripps that brings great value to both companies," said Gray President and Co-CEO Pat LaPlatney. "We anticipate expanding the news staff and hours of live local newscasts on both stations soon after closing the acquisitions."
Read more: KADN in Lafayette among several Allen Media Group TV news stations up for sale
Scripps will acquire Gray's KKTV (CBS) in Colorado Springs, Colorado, where Scripps owns KOAA (NBC); KKCO (NBC) and low power station KJCT-LP (ABC) in Grand Junction, Colorado; and KMVT (CBS) and low power station KSVT-LD (Fox) in Twin Falls, Idaho, where Scripps owns low power station KSAW-LD (ABC). These acquisitions bolster Scripps' already strong regional presence in the West, where it owns and operates television stations across Montana, Idaho, Colorado, Utah, Arizona, Nevada and California, according to the release.
"These new stations will allow Scripps to expand upon our local sports and news strategies in key growth geographies for us," said Scripps President and CEO Adam Symson. "The resulting efficiencies will allow us to further invest in our connection to our communities, offering even richer coverage of these neighborhoods and regions."
The swap involves the even exchange of comparable assets. In particular, the consideration for each transaction is the performance of the other transaction. As a result, neither company will pay cash consideration to the other.
Gray and Scripps anticipate closing both sides of the swap simultaneously in the fourth quarter of this year following receipt of regulatory and other customary approvals.