Deals
Gray Television to Buy Raycom Media in $3.65 Billion Deal
- TV station owners are combining to command higher fees
- Gray shares up as much as 16%, most intraday since June 2014
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Gray Television Inc. agreed to buy Raycom Media Inc. for $3.65 billion, another sign of how local broadcast stations are bulking up in the U.S. to get more revenue from pay-TV providers amid a fickle advertising market.
Gray will pay $2.85 billion in cash and $650 million in a new series of preferred stock, plus 11.5 million shares worth $147 million based on Friday’s closing price, according to a statement on Monday. Investors cheered the deal, sending Gray’s shares up as much as 16 percent, the most in four years.