Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS—D.D.C: U.S. consent decree blessing TV station operator combination approved, (Mar 7, 2016)

By Jeffrey May, J.D.

To resolve Department of Justice Antitrust Division concerns over a combination of broadcast television station operators, a proposed consent decree announced last December required Gray Television, Inc. and Schurz Communications, Inc. to divest two outlets. The proposed consent decree has now been approved by the federal district court in Washington, D.C. (U.S. v. Gray Television, Inc., March 3, 2016, Contreras, R.).

The Antitrust Division filed a complaint on December 22, 2015, challenging Gray’s proposed $440 million acquisition of Schurz. It simultaneously filed a proposed settlement to resolve the competitive harm alleged in the lawsuit. At the time, Gray operated broadcast television stations in 44 metropolitan areas, and Schurz operated 10 broadcast television stations in 7 metropolitan areas.

According to the complaint, the proposed transaction would have eliminated head-to-head competition between Gray’s and Schurz’s television stations for the business of local and national advertisers on television stations in South Bend, Indiana, and Wichita, Kansas. The Justice Department expressed concern that elimination of this competition would result in higher prices and lower quality services to broadcast television spot advertisers in these markets.

The consent decree required Gray to divest two television stations—the CBS-affiliated WSBT-TV in South Bend and the ABC-affiliated c in Wichita—to government-approved buyers. Gray closed on the Schurz acquisition on February 16.

The case is No. 1:15-cv-02232-RC.

Attorneys: Mark Andrew Merva for U.S. Department Of Justice. John Parker Erkmann (Cooley LLP) for Gray Television, Inc. Kendall Millard (Barnes & Thornburg) for Schurz Communications, Inc.

Companies: Gray Television, Inc.; Schurz Communications, Inc.

Cases: AcquisitionsMergers Antitrust AntitrustDivisionNews DistrictofColumbiaNews