Money Makers Mentor

Gray Television to Acquire Meredith’s Station Group For $2.7 Billion

Gray Television (NYSE: GTN) announced on Monday May 3 that it has entered a deal to acquire Meredith Corp.’s (NYSE: MDP) local media group for $2.7 billion cash. Meredith Corp.’s local media group is made up of 17 stations in 12 markets. According to Gray, this deal will transform it into the second largest television broadcast group in the U.S.

Acquisition Terms

Gray expects that this deal with Meredith will be significantly accretive to free cash flow per share. The company has identified an estimated $55 million in synergies annualized for the first full year after the deal’s closing, to date. The purchase price for this acquisition represents a multiple of about 7.9 times blended average of the Meredith television stations’ 2019/2020 cash flow. Included in this is the…

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