The current owner of KADN has a deal in place to sell it and other stations to Gray Media, which also has a deal in place to acquire KATC.
The $171 million deal involves 10 stations owned by Byron Allen’s Allen Media Group and is expected to be final in the fourth quarter of this year, both companies announced Friday morning.
Announced last month, Gray’s deal to acquire KATC as part of a noncash deal involving stations in five mid-sized and small markets is also expected to close in the fourth quarter.
The entire deal is pending regulatory approval by the FCC and includes certain waivers of local ownership rules and other customary closing conditions. Gray officials indicated they anticipate certain waivers of FCC local ownership rules.
If the deals get FCC approval, Atlanta-based Gray Media will have what is described as a full-power duopoly with Fox affiliate KADN and ABC affiliate KATC, and not a triopoly as earlier reported. Both are full-power stations, meaning they cover a larger geographic area, while NBC affiliate KLAF is a low-power station, a source indicated.
Gray has shown interest in Allen Media Group’s properties, according to a source close to the deal.
If both deals are approved, it’s unknown what will result from one company owning two of the three major TV stations in Lafayette. Staffing consolidations would likely occur.
KLFY, a CBS affiliate, is owned by Nexstar Media Group, which had previously owned KADN and KLAF. Nexstar sold them in 2016 when it bought KLFY to stay within FCC regulations regarding duopolies at the time.
The deal with Gray also includes stations in Mississippi, Alabama, Indiana, Illinois and Kentucky. Three stations — Columbus-Tupelo, Mississippi; Terre Haute, Indiana; and West Lafayette, Indiana — had the highest all-day ratings in 2024, according to Comscore.
It’s the latest in a Gray spending spree after it landed an $80 million deal to acquire all of Block Communications’ TV stations in the midwestern U.S. That deal is also expected to be finalized in the fourth quarter.
Gray is the nation’s largest owner of top-rated local television stations and digital assets. It operates in 113 TV markets that reach about 37% of U.S. TV households and owns other stations in every market in Louisiana: KLAX in Alexandria, WAFB in Baton Rouge, KPLC in Lake Charles, KNOE in Monroe, WVUE in New Orleans and KSLA in Shreveport.
“The management and staff here are excited and look forward to working with our new ownership with Gray,” said Jim Parker, vice president and general manager for KADN/KLAF.
Also on Friday, Gray announced its second-quarter earnings report, indicating its total revenue dropped 7% and ad revenue dropped 3% compared to a year ago.
Its stock price, which dropped to $4.14 a share at the close of market Thursday after being at $5.63 two weeks ago, rose to $4.23 at the close of market Friday.