On Monday, Gray Television announced it signing an agreement to acquire all of the television and radio stations of Schurz Communications for $442.5 million that includes working capital at closing.
Based in Mishawaka, Indiana, Schurz is a broadcast pioneer that owns television stations, radio stations, daily and weekly newspaper, cable companies and a telephone directory in medium and small-sized markets throughout the U.S. More than a century old company will not be selling any of its non-broadcast assets or business to Gray.
The transactions demonstrates Gray’s commitment to acquire high-quality stations in attractive markets and will increase Gray’s scale, the quality of its portfolio and its exposure to politically competitive markets. “Today is a momentous day in Gray’s 118-year history,” said Hilton H.Howell, Jr., Gray’s President and CEO. “Through the Schurz transaction, we will significantly expand the quality of our portfolio at leading television stations. We welcome more dedicated reporters, account executives and technologists to our growing family. Quite simply, Gray’s existing stations will make the Schurz stations stronger, while the Schurz stations will make our existing stations better.”
Andrew MacLeod, general manager of KTUU (a part of Schurz Communications) told his employees, “This is an opportunity for KTUU to be part of a bigger media company, Gray TV, at a time in the media business when scale is a critical path to the future.”
“In a rapidly consolidating industry where size and scale matter more than ever before, we have come to the realization that Gray Television would be the best steward to ensure our stations succeed over the long-term,” explained Todd Schurz, President and CEO of Schurz. “Gray knows how to operate top stations in small and medium-sized markets, and they have an entrepreneurial and decentralized culture,” he continued. “Moreover, Gray shares our commitment to local communities, staffs, journalistic ideals, and the broadcasting industry. Being part of a larger company with these important credentials will create more opportunities for employees and the communities that we all love.”