TEGNA Inc. and Gray Media Partnership to Bring Seattle Kraken Games to Alaska
In a strategic move to expand the reach of National Hockey League (NHL) broadcasts, TEGNA Inc. (NYSE: NYSE:) and Gray Media (NYSE: GTN) have joined forces to bring Seattle Kraken games to viewers in Alaska. The partnership, set to kick off in the 2024-2025 season, will see Gray's KAUU in Anchorage and KYEX in Juneau airing approximately 70 regular-season Kraken games each year, free over-the-air.
This expansion into Alaska is a significant part of TEGNA's broader strategy to deliver more games to a wider audience. Brad Ramsey, TEGNA's senior vice president of media operations, expressed enthusiasm for the growth of the broadcast network and the positive feedback from advertisers and sponsors in the Pacific Northwest. This partnership with Gray Media will extend the Kraken's presence beyond the continental United States, where TEGNA already broadcasts games in Seattle, Portland, and Spokane.
Jeff Webster, the Seattle Kraken's chief commercial officer, emphasized the importance of maintaining the team's connection with the hockey community in Alaska. The broadcast expansion aims to make Kraken hockey more accessible to fans in the region. Sandy Breland, Gray Media's chief operating officer, also highlighted the cultural significance of the partnership for Pacific Northwest viewers and fans.
The Seattle Kraken, NHL's 32nd franchise that debuted in 2021, is gearing up for the 2024-25 season with a home opener against the St. Louis Blues on October 8 at Climate Pledge Arena. The team welcomes new head coach Dan Bylsma and assistant coaches Bob Woods and Jessica Campbell, who makes history as the NHL's first full-time female assistant coach.
Gray Television has also been making waves in its financial operations and leadership structure. The company recently amended its $300 million accounts receivable securitization facility to maintain financial flexibility. Gray Television has also announced digital innovation efforts and upsized its private offering to $1.25 billion in senior secured first lien notes due 2029.
For Q1 2024, Gray Television reported a significant increase in net income and adjusted EBITDA, with net income attributable to common shareholders rising to $75 million and adjusted EBITDA growing by 21% to $197 million.
InvestingPro Insights
As TEGNA Inc. and Gray Media (NYSE: GTN) team up to bring Seattle Kraken games to Alaska, Gray Media's financial metrics and analyst expectations provide valuable insights for investors. With a market capitalization of $481.7 million and a low Price / Book multiple of 0.25, Gray Media may appeal to investors seeking undervalued stocks.
Despite recent revenue declines, Gray Media offers a substantial dividend yield of 6.26%, providing a significant return for shareholders. Analysts predict net income growth for the company this year, aligning with the company's strategy to expand its broadcast reach.
InvestingPro Tips suggest that Gray Media is on track to become profitable within the upcoming timeframe. The company's solid financial position, with liquid assets exceeding short-term obligations, bodes well for tackling future initiatives, such as the NHL broadcast expansion.
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In conclusion, the partnership between TEGNA Inc. and Gray Media to broadcast Seattle Kraken games in Alaska presents an exciting opportunity for investors. With Gray Media's strong financial metrics and promising analyst expectations, the company's expansion efforts and dividend yield offer potential value for shareholders. Stay informed and consider leveraging expert insights to make informed investment decisions.