Gray Television Inc (GTN-A)

History and Background

Gray Television, Inc. was founded in 1902 as Southern Newspaper, a publisher of newspapers. It entered broadcasting in 1943 with WALB-TV in Albany, Georgia. Over the decades, it has grown through acquisitions to become one of the largest broadcast television companies in the United States.

Core Business Areas

• Television Broadcasting: Owns and operates television stations and digital properties across the United States, primarily affiliated with major networks such as CBS, NBC, ABC, and Fox.
• Digital Media: Operates digital platforms associated with its television stations, offering news, weather, and other content online and through mobile apps.
• Production: Produces news and other programming for its stations and digital platforms.

Leadership and Structure

Hilton Howell serves as the Chairman and CEO. The company is structured with a corporate headquarters and regional management teams overseeing various station groups.

Key Offerings

• Local News Broadcasting: Delivery of local news content. Market share varies by local market; specific overall market share data is difficult to pinpoint. Competitors include other local broadcast stations (e.g., Nexstar, Sinclair), cable news channels, and digital news providers.
• Digital Advertising: Selling advertising on their websites and streaming platforms, using platforms such as Google and Youtube.
• Network Programming: Distribution of network programming. Revenue tied to advertising rates which fluctuate based on viewership and market conditions. Competitors are other affiliate stations of the same network.

Industry Overview

The television broadcasting industry is facing challenges from cord-cutting and the shift of viewership to streaming platforms. However, local news and sports remain strong draws for broadcast television.

Positioning

Gray Television is positioned as a leading local broadcaster with a focus on news and community engagement. Its competitive advantage lies in its strong local presence and established relationships with advertisers.

Total Addressable Market (TAM)

The total addressable market for U.S. television advertising is estimated at hundreds of billions of dollars annually. Gray Television captures a portion of this TAM through its local broadcast operations. Exact figures are hard to pinpoint.

Key Competitors

• NXST
• SBGI
• TEGNA

Competitive Landscape

Gray Television competes with other large broadcast station groups. Advantages include strong local presence; disadvantages include high debt levels. (Market share percentages are approximated.)

Quincy Media

• Year: 2021
• Acquisition Price (USD millions): 925
• Strategic Rationale: Expanded Gray's presence in key markets and added a complementary portfolio of stations.

Historical Growth: Gray Television has grown significantly through acquisitions. Organic growth has been more modest.

Future Projections: Future growth depends on factors such as advertising revenue, acquisition opportunities, and the performance of its digital media initiatives.

Recent Initiatives: Recent initiatives include investments in digital media platforms and the acquisition of additional television stations.

Gray Television is a large broadcaster with strong local news presence. Acquisitions fueled growth, but increased debt. The shift to streaming presents a challenge and opportunity. Future success depends on navigating changing consumer habits and managing debt load.

Data Sources:

• SEC Filings (10-K, 10-Q)
• Company Website
• Industry Reports
• Analyst Reports
• https://www.statista.com/statistics/270724/top-tv-station-groups-in-the-us-ranked-by-revenue/

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Market share data is approximate and based on available information.