Gray Television, Inc. to Acquire WNDU-TV From the University of Notre Dame
November 23 2005 - 2:30PM
PR Newswire (US)
ATLANTA, Nov. 23 /PRNewswire-FirstCall/ -- Gray Television, Inc.
(NYSE: GTN; GTN.A) and the University of Notre Dame today announced
an agreement in which Gray will acquire all of the capital stock of
Michiana Telecasting Corporation, the University-owned company that
operates WNDU-TV, for $85 million in cash. The agreement is subject
to certain conditions and regulatory approval. Founded by Notre
Dame in 1955, WNDU-TV (Channel 16) is the NBC affiliate serving the
South Bend-Elkhart, Ind., television market, the nation's 87th
largest Designated Market Area (DMA). Bob Prather, President of
Gray, said, "The acquisition of WNDU-TV is consistent with the
Company's strategy of acquiring dominant television stations in
markets with major universities. WNDU-TV is located on the Notre
Dame campus and is ranked No. 1 in overall audience share and news
viewing. This station has a proud heritage of serving the local
communities of the South Bend-Elkhart DMA and surrounding areas,
including portions of southwest Michigan." John Affleck-Graves,
Notre Dame's Executive Vice President, said, "As the University
explored the possibilities of selling WNDU, we remained dedicated
to finding a buyer that is committed to the local community and to
quality news and entertainment programming. We are absolutely
delighted to have found that match and are confident that Gray
Television will carry on the tradition of excellence found at WNDU
for the past half-century." Affleck-Graves said the $85 million
will be used for student and academic initiatives, with most of the
money to be invested in the University's endowment. He added that
student internships at WNDU-TV will continue. With the completions
of the acquisition of WNDU-TV and the previously announced
acquisition of WSAZ-TV, the NBC affiliate serving Charlestown-
Huntington, W.Va., Gray will own 35 stations serving 30 television
markets. The combined station group has 25 stations ranked No. 1 in
local news audience, 24 stations ranked No. 1 in overall audience
within their respective markets, and reaches approximately 6
percent of total U.S. TV households. Gray currently anticipates,
but cannot assure, that the WNDU-TV acquisition will be completed
before June 30, 2006, and that the acquisition of WSAZ-TV will be
completed by Dec. 31. Gray Television, Inc. Gray Television, Inc.
(http://www.gray.tv/) is headquartered in Atlanta and, including
WNDU-TV and WSAZ-TV, operates 16 CBS-affiliated television
stations, 10 NBC-affiliated stations and seven ABC-affiliated
stations. Contacts: Bob Prather, President, 404-266-8333, or Jim
Ryan, Chief Financial Officer, 404-504-9828, both of Gray
Television, Inc. Web site: http://www.gray.tv/ University of Notre
Dame Contact: Dennis Brown, associate director of news and
information, 574-631-7367 Web sites: http://www.wndu.com/,
http://www.nd.edu/ Kalil & Co., Inc. acted as the exclusive
broker for the University of Notre Dame. DATASOURCE: Gray
Television, Inc.; University of Notre Dame CONTACT: Bob Prather,
President, +1-404-266-8333, or Jim Ryan, Chief Financial Officer,
+1-404-504-9828, both of Gray Television, Inc.; or Dennis Brown,
Associate Director of News and Information of University of Notre
Dame, +1-574-631-7367 Web site: http://www.gray.tv/
http://www.wndu.com/ http://www.nd.edu/
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