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Gray Television acquires group of 4 TV stations

ATLANTA (AP) -- Gray Television Inc. said Monday that it reached a deal to buy Yellowstone Television LLC, which owns several TV stations that operate in Texas, Wyoming and Nebraska.

Under the agreement, Gray bought a 99 percent non-voting interest in Yellowstone for $23 million in cash and started operating the Yellowstone stations under a local marketing agreement.

The stations are: KGNS-TV in the Laredo, Texas, market and KGWN-TV in the Cheyenne, Wyo.-Scottsbluff, Neb., market. KGWN-TV extends throughout the market via KSTF(TV) in Scottsbluff, Neb., and K19FX in Laramie, Wyo. In addition, KCHY-LP, which is the NBC affiliate for the Cheyenne-Scottsbluff market, will now integrate its operations with KGWN-TV. Also being acquire is KCWY-TV in the Casper, Wyo., market

If it receives regulatory and other approvals, Gray will acquire voting control of Yellowstone in a follow-up deal that is expected to close in the fourth quarter of this year or the first quarter of 2014. Additional financial terms were not disclosed.

Atlanta-based Gray owns and operates TV stations in 31 markets. In midday trading, its shares rose 33 cents, or 4 percent, to $8.67.