Raycom Media has a rich history that spans over three decades. Founded in 1996, the company was established by Raymond Burkart Jr.
Raycom Media started as a small television station owner, but quickly expanded to become one of the largest independent television station owners in the United States.
The company's headquarters is located in Jackson, Mississippi.
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Acquisition by Gray Television
Gray Television has agreed to buy Raycom Media for $3.6 billion, a move that will create the single largest owner of top-rated TV stations in the country.
The combined company will have 142 stations in 92 separate markets, reaching 24% of the TV homes in the U.S. Gray currently owns or operates about 100 stations in 57 markets, while Raycom owns or provides services for 65 stations in 44 markets.
Gray will receive Raycom Sports, a marketing, production and events management and distribution company, as part of the deal. Raycom president and CEO, Pat LaPlatney, will become Gray's president and co-CEO after the deal is completed.
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The transaction is expected to close in the fourth quarter of this year, pending regulatory approval. Gray has agreed to divest stations in nine overlap markets to facilitate regulatory approval.
Here is a list of the overlap markets where Gray will divest stations:
- Knoxville, Tenn.
- Waco, Texas
- Albany, Ga.
- Toledo, Ohio
- Tallahassee, Fla.
- Augusta, Ga.
- Panama City, Fla.
- Dothan, Ga.
The deal is a significant one, with Gray's chairman Hilton Howell stating that it will create a "powerhouse local media operation" that will excel at providing local news, entertainment, and sports content.
Station Group of the Year 2015
Raycom Media was recognized as the 'Station Group of the Year' for 2015 by industry publication Broadcasting & Cable.
This prestigious award highlighted Raycom's strong local news operations, commitment to investigative journalism, innovative digital strategies, and overall excellence across its television stations.
The honor was a testament to Raycom's dedication to providing high-quality news and programming to its viewers.
Raycom's achievement was a significant milestone in the company's history, showcasing its ability to excel in a competitive industry.
Broadcasting & Cable's recognition of Raycom Media as Station Group of the Year in 2015 was a well-deserved accolade that acknowledged the company's hard work and commitment to excellence.
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Gray Television to Buy in $3.65 Billion Deal
Gray Television has agreed to buy Raycom Media in a cash-and-stock deal valued at $3.65 billion. This massive acquisition will create a powerhouse local media operation, combining Gray's 100 stations in 57 markets with Raycom's 65 stations in 44 markets.
The combined company will have 142 full-power television stations in 92 markets, the third largest portfolio of stations and markets in the United States. This will give the new entity a reach of 24% of the TV homes in the U.S.
The deal will consist of $2.85 billion in cash, $650 million in a new series of preferred stock, and 11.5 million shares of Gray common stock. Wells Fargo has underwritten the debt financing portion of the transaction for $2.53 billion.
Gray's station portfolio presently reaches about 10.4 percent of total U.S. television households, and the combined company will boost it to 24 percent. This significant increase in reach will provide the station group with leverage in its negotiations with broadcast operators and cable distributors.
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To facilitate regulatory approval of the deal, Gray has agreed to divest stations in nine overlap markets. These stations will be marketed to third parties by Wells Fargo, which is underwriting a portion of the Raycom deal.
Raycom President and Chief Executive Officer Pat LaPlatney will become Gray's president and co-chief executive officer, and current Gray CEO Hilton Howell will become executive chairman and co-chief executive officer.
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Company Information
Raycom Media is a television broadcasting company that has been around since 1958. It was founded by Raymond W. Burkhardt.
Raycom Media is headquartered in Montgomery, Alabama.
Frequently Asked Questions
What happened to Raycom Sports?
Raycom Sports was acquired by Gray in 2019, marking the end of its independent operations. The company had previously worked with several major college sports conferences, including the ACC, SEC, and Big Ten.
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