Media entrepreneur Byron Allen has agreed to sell ten of his local television stations to Atlanta-based Gray Media in a cash transaction valued at $171 million, a move first reported by Variety and confirmed in regulatory documents filed Friday. The portfolio spans Alabama, Indiana, Illinois, Louisiana, Kentucky and Mississippi, broadening Gray’s reach into three new markets while deepening its footprint in seven existing ones.
According to deal materials, Gray will assume control of ABC affiliate WAAY-TV in Huntsville, WSIL-TV serving the Paducah-Cape Girardeau region, WTVA in Columbus-Tupelo and seven additional outlets including WLFI-TV in West Lafayette and WFFT-TV in Fort Wayne.
Gray expects the purchase to close in the fourth quarter following FCC review and waivers, anticipating cost-efficient duopolies that can support additional local news, weather and sports programming. Allen’s decision follows his June engagement of investment bank Moelis & Co., hired to evaluate sales of up to 28 stations as part of an effort to pare debt and focus on national cable brands.
His station group has faced financial pressure during the past year, marked by staff reductions and a controversial plan to centralize weather operations at The Weather Channel. For Gray, the deal underscores an acquisition streak that earlier this month included an $80 million agreement for Block Communications outlets, signalling confidence that regulators will loosen ownership caps.
Gray, which already operates 180 stations across 113 markets and is the country’s largest owner of NBC affiliates, views scale as essential for funding ATSC 3.0 upgrades and competing with streaming platforms. Industry analysts trace today’s transaction to momentum created by the 2021 Quincy Media divestiture, when Allen bought ten stations for $380 million, a deal that demonstrated the strategic value of mid-market properties for both companies. Next steps include filing transfer applications with federal regulators; insiders expect a swift review given the absence of overlapping stations between the parties.
