Disclosure: Jon Ellis is an employee of Gray Media Group. The statements and views expressed in this posting are his own and do not reflect those of Gray Media Group.
Gray Media Group is requesting a waiver from the FCC to purchase the FOX affiliate that it already operates alongside its NBC affiliate in Rochester, MN.
KXLT-TV/47.1 (Rochester) is currently owned by SagamoreHill of Minnesota and is operated alongside Gray NBC affiliate KTTC/10.1 (Rochester) through joint sales and shared services agreements. The agreements began more than two decades ago, prior to Gray’s purchase of KTTC from Quincy Media.
The asset purchase agreement filed with the FCC calls for Gray Local Media to pay SagamoreHill of Minnesota Licenses $490,500 for KXLT-TV, subject to prorations.
FCC rules normally prohibit a company that owns one top-four rated station in a market from buying a second top-four rated station. Gray says KXLT-TV meets the criteria for a failing station waiver that would allow the sale.
The criteria for a failing station waiver include a low all-day audience share, negative cash flow for three consecutive years, public interest benefits, and the lack of an “out-of-market buyer willing and able to acquire the station at other than an artificially depressed price.” Specific data is redacted from the public filing.
The filing also says that if the deal is approved, Gray intends to “explore the opportunities it has to expand local programming production” in the market, citing the fact that, as a FOX affiliate, KXLT-TV has fewer network commitments and more opportunities to insert local programming.
Competing stations in the market include Hubbard ABC affiliate KAAL/6.1 (Austin-Rochester), Allen Media CBS affiliate KIMT/3.1 (Austin-Rochester), PBS station KSMQ/15.1 (Austin), and Iowa PBS station KYIN/24.1 (Mason City).