Gray Television will be going to become the third-largest television group in the United States, after winning the approval from FCC to acquire Raycom Media, as FCC approved the $3.6 billion merger deal on Thursday.
Earlier, a divesting requirement came out on last Friday as a condition by the U.S. Justice Department for merger of Gray Television Inc and Raycom Media, a privately held broadcaster.
Makan Delrahim, Assistant Attorney General of the Justice Department’s Antitrust Division, in a statement said that divestitures requirements has been imposed based upon serious competitive harm to cable subscribers and small businesses potentially be arising from the Gray merging with Raycom.
Broadcasting over 200 programming streaming, including over 100 affiliates of the FOX, NBC, ABC and CBS networks, Gray has been working with its television in 57 television market which presently has been reaching to 10.4 percent of total households in the United States, which will increased to 24 percent after the merger with 142 full-power television stations in 92 markets.
Antitrust Division in its filing in the U.S. District Court for the District of Columbia, along with a lawsuit seeking to block the merger, has also proposed these divestiture conditions for settlement, as said Justice Department statement.
Waco–Temple–Bryan, Texas; Dothan, Alabama; Knoxville, Tennessee; Tallahassee, Florida; Odessa-Midland, Texas; Toledo, Ohio; Albany, Georgia; Thomasville, Georgia and Panama City, Florida will be the nine markets in which divestitures will apply if the court approves the proposed settlements. Gary and Raycom have been overlapping in these markets already.
WMTV, serving 11 southern Wisconsin counties of Grant, Marquette, Dane, Richland, Sauk, Rock, Lafayette, Juneau, Columbia, Green and Iowa, is also a subsidiary of Gray Television.
$2.85 billion in cash, $650 million in a new series of preferred stock, and 11.5 million shares of Gray’s common stock will be the amount Gray will be paying for the $3.6 billion merger transaction.
The deal is expected to be closed in January 2019.