Gray Television Inc. Expands Footprint with Acquisition of American Spirit Media Stations
In a significant move to bolster its local presence and enhance its operational scale, Gray Television, Inc. (NYSE: GTN) has announced an agreement to acquire six television stations from American Spirit Media, LLC for a total transaction value of $50 million. This acquisition is poised to further Gray's strategy of pursuing prudent tuck-in acquisitions that reinforce its existing market positions.
1. Details of the Acquisition
The six television stations included in this acquisition are:
| Rank | Market | Station | Affiliation |
|---|---|---|---|
| 81 | Toledo, OH | WUPW | FOX |
| 100 | Jackson, MS | WDBD | FOX |
| 125 | Wilmington, NC | WSFX-TV | FOX |
| 126 | Columbus, GA | WXTX | FOX |
| 149 | Wichita Falls, TX | KAUZ-TV | CBS |
| 176 | Lake Charles, LA | KVHP | FOX |
Gray has had a long-standing relationship with five of these stations, providing back-office services for over a decade. According to Gray, they have also been delivering local news through their own stations in these markets. The acquisition is expected to leverage Gray's existing news, sales, and sports strategies, thereby benefiting the local communities and serving the public interest.
2. Transaction Structure and Financial Implications
The transaction will occur in two closings, with the first one already completed. Gray has paid $40 million to American Spirit and initiated a limited local management agreement for the stations. This initial payment was funded through a portion of the proceeds from a recent private placement of $70 million of aggregate principal amount of the Company’s 7.250% Senior Secured First Lien Notes due 2033, executed on June 30, 2026.
Gray anticipates using cash on hand to finalize the second portion of the acquisition in the fourth quarter of 2026, pending the necessary regulatory approvals and customary closing conditions. At that point, the local management agreement will conclude.
3. Strategic Rationale Behind the Acquisition
Gray's acquisition of American Spirit Media's stations aligns with its ongoing efforts to strengthen its market presence and improve operational efficiency. The acquisition is expected to be cash flow accretive and will not increase Gray's Consolidated Total Net Leverage Ratio, as defined in its Senior Credit Agreement. This transaction also supports Gray’s overarching strategy of improving its balance sheet while expanding its reach in attractive markets.
Over the past year, Gray has been actively involved in several television station acquisitions, reinforcing its commitment to enhancing local media capabilities. The addition of these stations will allow Gray to establish two-station footprints in various markets, further solidifying its status as the nation's largest owner of top-rated local television stations.
4. About Gray Media
Gray Media is headquartered in Atlanta, Georgia, and is recognized as the largest owner of local television stations and digital assets in the United States. As of May 15, 2026, Gray operates in 117 full-power television markets, reaching approximately 37% of U.S. television households. The company’s portfolio boasts several top-rated television stations and the largest Telemundo Affiliate group in the country.
With a range of media properties, including digital marketing services through Gray Digital Media and video production companies, Gray continues to diversify its offerings while maintaining a strong local presence.
The acquisition of American Spirit Media's television stations marks a pivotal moment for Gray Television, reinforcing its commitment to local media and setting the stage for future growth and innovation in the broadcasting landscape.
