DOJ Requires Gray/Quincy Divestitures
DOJ will require Gray Television to divest stations to Byron Allen’s Allen Media as a condition of approving Gray’s proposed $925 million buy of Quincy Media, an arrangement that mirrors the divestiture plan Gray announced in April (see 2104290067). DOJ’s…
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announcement Wednesday is likely a sign that the Quincy acquisition will close in the coming days, said an informed broadcast lawyer. “Without the required divestitures, Gray’s acquisition of Quincy threatens significant competitive harm to cable and satellite TV subscribers and small businesses that advertise on broadcast television,” said Antitrust Division acting Assistant Attorney General Richard Powers. DOJ filed a civil antitrust suit alongside its proposed settlement in U.S. District Court in Washington. Without the divestiture plan, the transaction “would enable Gray to blackout more Big Four stations simultaneously” in the overlapping markets “than either Gray or Quincy could blackout independently today,” DOJ said. Powers said the divestitures are “a complete resolution” of DOJ’s concerns and praised the broadcasters involved as acting in “good faith.” The 10 divestitures involve seven markets: KVOA Tucson; WKOW Madison, Wisconsin; WSIL-TV Harrisburg, Illinois, and its satellite station KPOB-TV Poplar Bluff, Missouri; KWWL Waterloo, Iowa; Wisconsin's WXOW La Crosse and satellite WQOW Eau Claire; Wisconsin's WAOW Wasau and satellite WMOW Crandon; and WREX Rockford, Illinois. Neither Gray nor Allen Media commented Wednesday. Gray said in April the arrangement was intended to facilitate regulatory approval of the Quincy deal, which will send 11 stations to Gray. The divestitures don’t include the CW and MeTV programming streams broadcast on the digital subchannels of the stations, the DOJ proposed final judgment said. “Defendants’ retention of those CW and MeTV programming streams will not prevent the divestiture buyer from operating the Divestiture Stations as viable, independent competitors.”