Gray buying Hoak & Prime Stations

[tyrannical bastard 3464]

http://www.tvnewscheck.com/mobile/index/article/id/72138

 

Holy crap.....at least they're going to be putting KREX and WMBB up for sale!

[GoldenShine9 1509]

Wow that is surprising they are putting those two up for sale! Of course, that means they are probably Sinclair bait...

[GoldenShine9 1509]

As for this deal, with those two being sold off completely (Sinclair has nothing in those two markets so they are the most likely IMO), there are no conflicts other than status quo situations (where Hoak shells become Gray shells) so there should be no problem with this deal at all.

[hathawaynson2 38]

http://www.tvnewscheck.com/mobile/index/article/id/72138

 

Holy crap.....at least they're going to be putting KREX and WMBB up for sale!

 

wow! one, I am suprised that gray is grabbing more stations and selling some of the stations due to the ownership regulations that the fcc has had for decades. I am impresses that WMBB and KREX are up for sale.

[broadcastfan9751 136]

If Gray creates a new shell for KREX and WMBB, they would control every major network affiliation in Grand Junction and Panama City.

[Samantha 2878]

Wow. I'm somewhat impressed that Gray is actually selling in Panama City and Grand Junction—then again, they knew they had no choice there. That would have been utter market domination. They will own the three-of-four in Grand Junction and in North Platte (CBS/Fox/NBC). Actually, Raycom owns the Fox in Panama City, WPGX. WPGX has no local news; could you see Raycom making a move for WMBB to expand its presence in that market?

 

The really convoluted Lincoln-Hastings-Kearney-North Platte market(s) are set to converge even further. Gray will own/operate both KOLN/KGIN and KHAS/KNOP, plus K11TW/KIIT (Fox). This is the "market" that still has two ABC outlets (KHGI-KWNB and KLKN, and Citadel stated that they wanted to expand the latter to the entire market; I imagine NTV has been up for sale if the KSWT situation is any indication). I made a handy chart to illustrate that three media companies own the various outlets providing Big Four service to the three parts of these two markets:

 

 

Citadel is blue, Gray is yellow and Pappas is green. Darker shades = LMAs/shells. Citadel better be looking at buying KHGI/KWNB because it'll be the only way for them to expand KLKN while getting the market leverage they will need to compete against Gray.

 

Some questions and things I see:

• Is Gray not selling off KFQX, sister to KREX? The two stations are currently consolidated.
  
• Is Hoak retaining the license assets of KAUZ Wichita Falls (operated by Drewry/KSWO) in this acquisition?
  
• Will this mean Hoak stations, which have been held off Dish Network thanks to Hoak's objection to the Hopper, will return?
  

[tyrannical bastard 3464]

I could see Nexstar picking up WMBB and making a play for WPGX. This would work well with WDHN in Dothan, seeing how isolated they are from the rest of Nexstar's other stations.

[GoldenShine9 1509]

 

 

Wow. I'm somewhat impressed that Gray is actually selling in Panama City and Grand Junction—then again, they knew they had no choice there. That would have been utter market domination. They will own the three-of-four in Grand Junction and in North Platte (CBS/Fox/NBC). Actually, Raycom owns the Fox in Panama City, WPGX. WPGX has no local news; could you see Raycom making a move for WMBB to expand its presence in that market?

 

The really convoluted Lincoln-Hastings-Kearney-North Platte market(s) are set to converge even further. Gray will own/operate both KOLN/KGIN and KHAS/KNOP, plus K11TW/KIIT (Fox). This is the "market" that still has two ABC outlets (KHGI-KWNB and KLKN, and Citadel stated that they wanted to expand the latter to the entire market; I imagine NTV has been up for sale if the KSWT situation is any indication). I made a handy chart to illustrate that three media companies own the various outlets providing Big Four service to the three parts of these two markets:

 

 

Citadel is blue, Gray is yellow and Pappas is green. Darker shades = LMAs/shells. Citadel better be looking at buying KHGI/KWNB because it'll be the only way for them to expand KLKN while getting the market leverage they will need to compete against Gray.

 

Some questions and things I see:

• Is Gray not selling off KFQX, sister to KREX? The two stations are currently consolidated.
  
• Is Hoak retaining the license assets of KAUZ Wichita Falls (operated by Drewry/KSWO) in this acquisition?
  
• Will this mean Hoak stations, which have been held off Dish Network thanks to Hoak's objection to the Hopper, will return?
  

 

 

KFQX is being sold as well based on what I am reading. I would assume KFQX and KREX+ will go together and remain sister stations (KREX+ to the primary company and KFQX to its shell). Would Gray sell them together with WMBB, or separately?

 

No mention was made of KAUZ, but Drewry would have to set up a shell to acquire that outright.

 

Citadel and Pappas look like stations ripe for the picking by someone else, as they are very weak companies. I am still surprised Nexstar did not pick up KLKN; if they did, they would have a clear case to buying the Pappas stations and that would clear the air in the smaller Nebraska markets. WOWT might just become a flagship for the whole state network (think KSN in Kansas and KELO in South Dakota?)

[Samantha 2878]

Citadel sold off its other three Iowa/Nebraska stations but kept KLKN and WLNE, saying they had unfinished business. And it's a miracle that Pappas has held on this long—the liquidating trust changed hands last month (from Lee W. Shubert to David Stapleton). The KSWT failing station waiver for its acquisition by Brian Brady is sitting there at four months. If they've been shopping the stations for more than a year, which is probably the case with NTV as it is for sure in Yuma, something's up.

[effseesee 101]

Raycom is another possibility for WMBB. They already own WPGX, but they could spin that off to American Spirit and get a duopoly in the market.

 

Is it possible that NPG could come right back into GJ after selling KJCT?

 

Here's another thing to ponder: It was reported a month or so ago that Sinclair was snooping around KRNV in Reno to pair up with the recent acquisition of KRXI/KAME. You have to wonder if Gray is trying to get Sarkes-Tarzian, a company Gray has a minority interest in, to sell KTVN to Excalibur, and WRCB to Gray.

[ABC 7 Denver 1552]

1. Since KFQX rebroadcasts KDVR's newscasts, is there anyway Tribune could be a buyer?
   
2. I only see one buyer for KREX | KFQX (as a) duopoly and that is SBG. They already own the Fox Affiliate, KXRM, in SoCo and KREX is a small outlet such that I already think the goals of Hoak in GB align with SBG.
   

[promoguy98 252]

 

I could see Nexstar picking up WMBB and making a play for WPGX. This would work well with WDHN in Dothan, seeing how isolated they are from the rest of Nexstar's other stations.

 

Agree. Nexstar or Raycom both seem to be the standout contenders, especially with doing a shell setup between WMBB/WPGX. Would make the process, easier than usual, considering that both stations are across the street from one another. Wonder if they would potentially consolidate into one building or move (a potential) duop *cough* shell setup into a NEW building. Very interesting development there in Panama City.

 

>> EDIT: adding some additional thoughts - the possibility exists, even if it's a small one, that Gray sells WMBB to a third party that may or may not continue to shell out the ongoing investment capital needed to continue being overly competitive against their own market interest (WJHG)... Not saying this will happen, but that possibility exist when Gray gets to buy a market competitor and then quickly turns around and sells it to avoid FCC ownership overlap rules - - to me, this type of practice certainly doesn't lend itself to tilt in the favor of the quickly bought and sold station, UNLESS a broadcast group player has a station that Gray really wants! I hope this is the case.

[CircleSeven 1944]

Wow! I vaguely thought of a possibility, but I didn't see this coming a kilometer away.

 

But I strongly think that these are a very good fit for its regional footprint. They already gobbled the whole Cornhusker state from east to west with KGWN's sattellite KSTF in Scottsbluff. But now with Hoak, they're gobbling up KHAS, and will almost monopolize little North Platte. But of course they can, since KNOP is the full power and KNPL & K11IT are LPs. KSNB could move its studios to KHAS facilities and do their "10/11 Central Nebraska" News there, so it would really be centric to that area. The real good thing about it is that they don't have to do much consolidation. The only place that could see major consolidation is in North Platte. I wish I can see placards or signs that say Gray Loves Nebraska because I've never seen a same group that gobbled up everything in one state this quick, almost like Nexstar with Upstate New York, even though they're not in Buffalo or Albany.

 

As for the spin-offs, Media General should've thought twice before selling WMBB, especially since Hoak had done recent infrastructures, including HD conversions and such. I do agree that Nexstar should make a play for WMBB, and they should make a play for KALB (it would go well with its proposed WNTZ), because it would basically become another island for Gray. But if they don't want to sell, I see Nexstar getting Pollack/Belz's KLAX, but you know what they have to do. Break the bank in much-needed capital to compete with head up juggernaut KALB. As for KREX/KFQX, I wouldn't want NPG to come back to Grand Junction after selling its longtime station KJCT. I could say Cordillera, but I'm worried that this group itself could be swallowed. I'd said Nexstar should acquire the Corpus Christi duo (KRIS/KZTV). Could it be their meal ticket? But sadly, Sinclair could also be a target in Colorado, after the approval of the Barrington acquisition (KXRM/KXTU). KREX/KFQX & KOAA looks even more in their favor.

 

And I'm not going to escape my speculating hypothesis in a possible Gray/Raycom convergence. The Hoak acquisition will give Gray an extra 1%+ more in their coverage area, which would give a proposed merger total to about 19-20% (still 19% under the cap). Hell, I wouldn't mind seeing Excalibur acquire WPGX as suggested earlier, plus WDFX. And maybe WFXG & WTNZ, give or take, should that "Graycom" power ever comes to fruition. But with this news, I think there's that open possibility, as long as they don't get redlighted by the "Heathens of Hunt Valley".

 

I still wish that Hoak & Max Montana would be acquired by the same group. Maybe Gray could make a left turn and buy them off of Cowles? Or maybe Gray could possibly have an eye on Montana's biggest prize, the CBS MTN cluster from Cordillera? Anything is possible now.

[GoldenShine9 1509]

 

Wow! I vaguely thought of a possibility, but I didn't see this coming a kilometer away.

 

But I strongly think that these are a very good fit for its regional footprint. They already gobbled the whole Cornhusker state from east to west with KGWN's sattellite KSTF in Scottsbluff. But now with Hoak, they're gobbling up KHAS, and will almost monopolize little North Platte. But of course they can, since KNOP is the full power and KNPL & K11IT are LPs. KSNB could move its studios to KHAS facilities and do their "10/11 Central Nebraska" News there, so it would really be centric to that area. The real good thing about it is that they don't have to do much consolidation. The only place that could see major consolidation is in North Platte. I wish I can see placards or signs that say Gray Loves Nebraska because I've never seen a same group that gobbled up everything in one state this quick, almost like Nexstar with Upstate New York, even though they're not in Buffalo or Albany.

 

As for the spin-offs, Media General should've thought twice before selling WMBB, especially since Hoak had done recent infrastructures, including HD conversions and such. I do agree that Nexstar should make a play for WMBB, and they should make a play for KALB (it would go well with its proposed WNTZ), because it would basically become another island for Gray. But if they don't want to sell, I see Nexstar getting Pollack/Belz's KLAX, but you know what they have to do. Break the bank in much-needed capital to compete with head up juggernaut KALB. As for KREX/KFQX, I wouldn't want NPG to come back to Grand Junction after selling its longtime station KJCT. I could say Cordillera, but I'm worried that this group itself could be swallowed. I'd said Nexstar should acquire the Corpus Christi duo (KRIS/KZTV). Could it be their meal ticket? But sadly, Sinclair could also be a target in Colorado, after the approval of the Barrington acquisition (KXRM/KXTU). KREX/KFQX & KOAA looks even more in their favor.

 

And I'm not going to escape my speculating hypothesis in a possible Gray/Raycom convergence. The Hoak acquisition will give Gray an extra 1%+ more in their coverage area, which would give a proposed merger total to about 19-20% (still 19% under the cap). Hell, I wouldn't mind seeing Excalibur acquire WPGX as suggested earlier, plus WDFX. And maybe WFXG & WTNZ, give or take, should that "Graycom" power ever comes to fruition. But with this news, I think there's that open possibility, as long as they don't get redlighted by the "Heathens of Hunt Valley".

 

I still wish that Hoak & Max Montana would be acquired by the same group. Maybe Gray could make a left turn and buy them off of Cowles? Or maybe Gray could possibly have an eye on Montana's biggest prize, the CBS MTN cluster from Cordillera? Anything is possible now.

 

 

Agreed re: Hoak's Louisiana properties being out of place for Gray, they have nothing in that whole region (they are focused on the Plains/Midwest and Southeast), while the south-central region is pretty much Nexstar and Raycom territory. Unless they are starting to build a base there (Morris Multimedia might be a good place to go next? that would get them WCBI and WXXV), that seems like an odd purchase. Nexstar would have almost no way to get the El Dorado-Monroe assets though as that would leave them with a monopoly in the market (and would need a shell to get KALB I believe), so in retrospect it was probably the most reasonable move.

 

As for the loose assets, I believe Sinclair is the strong favorite if someone scoops up all five stations. If WMBB and KREX+/KFQX go separately, then I would put Cordillera as the favorite other than Sinclair for the Grand Junction cluster (although they would need a shell), and Nexstar a possibility for WMBB.

[CircleSeven 1944]

 

Agreed re: Hoak's Louisiana properties being out of place for Gray, they have nothing in that whole region (they are focused on the Plains/Midwest and Southeast), while the south-central region is pretty much Nexstar and Raycom territory. Unless they are starting to build a base there (Morris Multimedia might be a good place to go next? that would get them WCBI and WXXV), that seems like an odd purchase. Nexstar would have almost no way to get the El Dorado-Monroe assets though as that would leave them with a monopoly in the market (and would need a shell to get KALB I believe), so in retrospect it was probably the most reasonable move.

 

As for the loose assets, I believe Sinclair is the strong favorite if someone scoops up all five stations. If WMBB and KREX+/KFQX go separately, then I would put Cordillera as the favorite other than Sinclair for the Grand Junction cluster (although they would need a shell), and Nexstar a possibility for WMBB.

 

I wasn't talking about Nexstar in the Monroe-El Dorado, I was only mentioning about Nexstar in the Alexandria market. Since they are proposed to get WNTZ, I doubt they want just that station. They probably want to acquire a companion station. And since Gray will get KALB, which is the top station in the market, Nexstar's only other choice might be to go after Pollack-Belz for KLAX, but as I said, they would have to do heavy capital investment for both stations if they want to compete with 200lb-Chimp KALB, and yes Nexstar would have to use the Mission card since they're too few in that market.

 

Speaking of Morris, I've been getting the impression that they might be willing to sell, if the price is right. Like I stated, Gray getting KALB builds them another island. But since Gray does own WTOK, which is the top station in that market, I wouldn't mind seeing them own WCBI, which is north of WTOK's coverage area. I could've also said WXXV as well, but if a Raycom/Gray merger would've happen, you don't want to see a monopolized Biloxi market. WXXV would've had to changed owners again, because they're not going to give up WLOX. Hmmm, I'm leaning towards WXXV to Media General, but if you do that, all they going to do is to run master controls form Jackson, almost in a way that they do for WHLT. They might do some better investments, but not any major improvements, almost as robust as WLOX's budget.

 

As for the other Morris Markets, I come to thinking. Since MG is somehow back, why not MG buy back WTVQ & WDEF plus WWAY in Wilmington? Since Media General has a strong foothold in the state of Tennessee (Tri-Cities, Knoxville, Nashville, and portions of the Greenville, SC), why not get back WDEF to bring back a stronghold of the Eastern half of the state (And then knock on Fox's door for WHBQ to possibly complete the TN cluster)? Also, even though WWAY is not the top station in the Wilmington, NC market, they do have stations in their adjacents (WNCT in Greenville, NC and WBTW in Florence, SC). This would grow their southern cluster greatly. Gray could acquire WWAY (also adjacent to WITN in Greenville), except should a Gray/Raycom merger would've happen, they would have to spin-off WWAY again. And going back to Lexington would strengthen its portfolio in the capital markets, since Frankfort is in the Lexington market. Lexington wouldn't work anyway for Gray because they own's WKYT. That would leave its flagship WMGT. In Macon, to tell you the truth, Gray is probably better off buying WGXA instead of WMGT. WGXA is better in competiting towards top station WMAZ. And Gray may not need any heavy investments other than a fresh coat of paint, and other small stuff. But I'm not sure if Morris wants to give up WMGT.

 

So yes, having parts of Morris for Gray would probably work but it other than WCBI (because of close proximity to WTOK), all the other Morris stations would still seem to be an awkward choice.

[broadcastfan9751 136]

TVNewsCheck is reporting that Nexstar has agreed to purchase WMBB and KREX from Gray. Mission Broadcasting will get KFQX.

[CircleSeven 1944]

I was wondering why the formal paperwork of the Hoak stations haven't been posted as of yet. Gray probably wanted to wait until a buyer of the overlapped properties come forward, and within a month, they didn't have to wait because of this rapid M&A activity. The only paperwork from this deal that's been posted is the KXND app from Prime Cities Broadcasting to Excalibur. Now they can make the massive paperwork now.

 

Since Nexstar is coming to Grand Junction, that is most certainly good news, because I would be pissed off if NPG came back, after selling its ABC station there. As for Panama City, Nexstar can't do any better than make further investments, although Hoak might've done the most of those investments, since they'd started HD ops over there. It would be pitiful to drop 615's Propulsion v2 for an Arnold pack, but that would likely be expected post-transaction. But then you know, since Nexstar does have that Dothan station, WDHN, it somewhat make sense for them to have WMBB close by. It somewhat eliminates that "island".

 

So with this Hoak Deal, most of the Hoak stations going to Gray, the Gray spinoffs are going to Nexstar. Of course we still don't know whether if Hoak is going to sell KAUZ or not. KAUZ have that SSA with Drewry's KSWO in Lawton, OK.

[CircleSeven 1944]

The Paperwork Is Up!!!!

 

Updated: 12/30/13 1:48am/ET

 

Okay, here's the thorough breakdown of the assignment the licenses/transfer of control applications from Hoak Media, LLC and Parker Broadcasting to Gray Television, Inc. and Excalibur Broadcasing, LLC, including transaction description and purchase agreement. The paperwork was made on November 20 (the date of the public announcement) and portions of the paperwork was posted December 23.

 

On the KFYR app, it asks for continued satellite waiver for the KFYR & KSFY satellites in the Dakotas. For purchase prices, Gray will pay Hoak deal $324.3M, while in this APA, Excalibur will pay Parker deal is $10.7M, making the total deal $335M. In a separate APA, KHAS (which had the only 314 form) will be assigned from Hoak to Excalibur (Hoak > Gray > Excalibur), Excalibur will be paying $17.7M.

 

The following Hoak stations will be transfered to Gray proper.

KVLY (NBC) Fargo, ND

KFYR (NBC) Bismarck, ND

KMOT (NBC) Minot, ND

KUMV (NBC) Williston, ND

KQCD (NBC) Dickinson, ND

KSFY (ABC) Sioux Falls, SD

KABY (ABC) Aberdeen, SD

KPRY (ABC) Pierre, SD

KNOP (NBC) North Platte, NE

KNOE (CBS) Monroe, LA

KALB (NBC) Alexandria, LA

 

The following Hoak station will be assigned to Excalibur.

KHAS (NBC) Hastings, NE

 

The following Parker stations will be transfered to Excalibur.

KXJB (CBS) Fargo, NE

KAQY (ABC) Columbia, LA

 

_________________________

 

Here's the paperwork for the stations being spun-off in the Grand Junction & Panama City to Nexstar Broadcasting. The deal was made between Gray & Nexstar on December 18, and it was announced the next day. The paperwork was posted on December 30. From the APA, Nexstar will pay Gray $33.4M for KREX and its satellites & WMBB. And on a separate APA, Mission will pay Excalibur $4M for KFQX. Also on the apps, KREX is asking for extension of satellite authority, and KFQX includes its August 23, 1994 Local Marketing Agreement document. The transaction will be transfered like this: (For WMBB & KREX (Hoak > Gray > Nexstar) & KFQX (Parker > Excalibur > Mission)).

 

The following Hoak stations will be transfered to Nexstar.

WMBB (ABC) Panama City, FL

KREX (CBS) Grand Junction, CO

KREG (CBS) Glenwood Springs, CO

KREY (CBS) Montrose, CO

 

The following Parker stations will be transfered to Mission.

KFQX (Fox) Grand Junction, CO

_________________

 

Also two unrelated deals that involves Gray, that's in the geographical area.

 

One of them is in the Hoak market. On the same day of the Hoak announcement on November 20, Prime Cities Broadcasting announced that it will sell Bismarck's Fox station KNDX, along with its Minot full-power satellite KXND, and other LP repeaters to Excalibur for $7.5M. That paperwork was made on November 19 and it was posted on November 29.

 

The other one was announced on December 18, when Gray announce its acquisition of Rapid City's Fox station KEVN and its satellite KIVV from Mission TV, LLC (unrelated to Nexstar-connected Mission Broadcasting) for $7.75M. That paperwork was made on December 18 and it was posted on December 30.

_________________

 

What I stated here earlier, KAUZ is not in part of this deal, therefore Hoak will keep the Wichita Falls station for now.

[GoldenShine9 1509]

Selling KAUZ to Drewry outright would require a shell there though? That is about the only alternative I can see which would keep it status quo.

[CircleSeven 1944]

It appears that the KNDX applications going to Excalibur has been DISMISSED, at the request of Prime Cities Broadcasting, the owners of KNDX.

[NewsMaster 226]

 

It appears that the KNDX applications going to Excalibur has been DISMISSED, at the request of Prime Cities Broadcasting, the owners of KNDX.

 

This deal may not happen now with what we believe will be the end of JSA's next Monday. I doubt that Gray will want to complete this deal without KHAS, KXJB or KAQY.

[CircleSeven 1944]

 

This deal may not happen now with what we believe will be the end of JSA's next Monday. I doubt that Gray will want to complete this deal without KHAS, KXJB or KAQY.

 

The difference with this deal (and the Quincy/Granite deal) is that they don't include JSAs, yet they do include SSAs (yet, the FCC did say that they will further scrutinize on any apps that includes other relating sharing arrangements including purchase options). However, Gray did amend its apps to eliminate its "Put/Call Option Agreement". Gray also said that the DOJ Antitrust Division have already gave its clearance, and hopes that the Media Bureau would grant those apps, without further delay.

 

If Louis Wall (owner of SagamoreHill) was gutsy enough to not include a JSA on any of his proposed stations in Fort Wayne & Duluth, why would they re-amend its KASW app to include a JSA on that one (it didn't have one when the original app came about in January), when the writing could already be on the wall. The FTC have already cleared on the Quincy/Granite deal within the month after the announcement.

[Samantha 2878]

That KASW thing is holding up the entire KTVK to Meredith acquisition. I'm starting to think it may be scavenged for parts by KAZT and KUTP while being sold for spectrum or to a Spanish broadcaster. It's not often full-powers come up for sale with potential to be Spanish stations (lots of Spanish LPTVs in the Phoenix area), and to get one puts you on equal footing with KTVW and KTAZ (and Telemundo has only been full-power since 2006).

 

Reading the application it appears that the Commission requested them to separate the JSA and SSA:

 

"Also at the request of the Commission's staff, a separate form of joint sales agreement is attached along with a revised form of shared services agreement."

[NewsMaster 226]

 

That KASW thing is holding up the entire KTVK to Meredith acquisition. I'm starting to think it may be scavenged for parts by KAZT and KUTP while being sold for spectrum or to a Spanish broadcaster. It's not often full-powers come up for sale with potential to be Spanish stations (lots of Spanish LPTVs in the Phoenix area), and to get one puts you on equal footing with KTVW and KTAZ (and Telemundo has only been full-power since 2006).

 

Reading the application it appears that the Commission requested them to separate the JSA and SSA:

 

"Also at the request of the Commission's staff, a separate form of joint sales agreement is attached along with a revised form of shared services agreement."

 

The only things that I could see happening are either that KASW goes to Univision and moving UniMas there from Flagstaff-based KFPH, or it goes to some spectrum speculator. If it were to be the latter, it opens discussion of where The CW goes in Phoenix, since it almost certainly would not be going to KTVK.

[GoldenShine9 1509]

I don't think anyone would want those stations as a standalone (which are currently in a shell configuration). Those markets are probably not large enough to support another news operation.