- With its $3.6B acquisition of Raycom complete, Gray Television (NYSE:GTN) is terminating national ad sales representation contracts covering the involved stations.
- Beginning Feb. 25, the former Raycom stations will join legacy Gray stations in handling all business directly with buyers, the company says.
- "For the past few years, Gray’s legacy television stations have successfully managed national advertising sales directly with national buyers, just as these stations have always dealt directly with their local and regional clients," Gray says.
- “Raycom Media has had a long and mutually beneficial relationship with Cox Reps," says co-CEO Pat LaPlatney, who joined via the acquisition. "We nevertheless believe that Gray has the systems and experience that will allow the former Raycom stations to take national sales in-house in a manner that will make those transactions more efficient for all parties."
- Gray's taking on termination fees of $27.6M to be reflected in Q1 broadcast expenses; it believes average annual expense savings will be $11M.
- GTN is 3.4% lower after hours; it closed up 3.5% during the regular session.
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