Gray Television Announces New Developments at Assembly Atlanta

Rhea-AI Summary

Gray Television has announced a long-term agreement with NBCUniversal to lease and operate new production facilities at the Assembly Atlanta development in Georgia. The state-of-the-art studios are expected to create over 4,000 jobs in the local area, supporting both construction and production activities. The facility will feature multiple soundstages and production spaces, with construction projected to be completed by late 2023. The capital expenditure for this project is estimated between $130 million and $140 million for 2022.

Positive

• Long-term agreement with NBCUniversal expected to enhance operational efficiency.
• Creation of over 4,000 jobs in the Atlanta area, benefiting local economy.
• Assembly Atlanta development progressing ahead of schedule.
• Capital expenditure guidance updated to $130 million to $140 million for 2022, indicating strong investment.

Negative

• Potential risks related to timely completion of the Assembly Studios project.
• Uncertainties in achieving expected benefits from the new facilities.

New Television and Film Studios will Create Thousands of New Jobs and Draw on Local Talent and Companies in the Atlanta Area

ATLANTA, June 01, 2022 (GLOBE NEWSWIRE) -- Gray Television, Inc. (“Gray” or “we”) (NYSE: GTN) has entered into a long-term agreement with NBCUniversal Media, LLC (“NBCU”) through which NBCU will lease and operate new state-of-the-art studio facilities at Gray’s Assembly Atlanta development in metropolitan Atlanta that will be constructed over the next several months.

“Gray Television is thrilled to expand our already strong relationship with NBCU,” said Gray’s Executive Chairman and CEO Hilton H. Howell, Jr. “The new venture announced today places Gray’s own studio projects inside a large, first-class television and film production facility that will draw upon and will surely increase the large pool of skilled industry professionals who also make their homes here in the Atlanta metroplex.”

Assembly Atlanta is a 135-acre mixed-use real estate complex centered around the studio industry at the former site of the General Motors Assembly Plant, which is located in the City of Doraville, Georgia. The property borders the Interstate 285 Perimeter and is near the Atlanta neighborhood of Buckhead. In 2021, Gray assembled the real estate that today comprises Assembly Atlanta. Last year, Gray retained Atlanta-based The Gipson Company as the developer and construction manager and JLL as the strategic advisor for Assembly Atlanta.

The signature component of the Assembly Atlanta development is the 43-acre Assembly Studios complex featuring soundstages, production offices, warehouse and mill buildings, studio bungalows, event space, and a parking deck. NBCU’s lease with Gray will include a full suite of facilities needed to support television and film production. The new facilities will include multiple soundstages, production office space, warehouses and mill space, as well as parking and other necessary amenities. Adjacent to the Assembly Studios complex is Third Rail Studios, a movie and television production facility spanning seven acres that opened in 2016 and that Gray acquired in September 2021.

NBCU will manage all studio and production facilities on-site within the Assembly Studios complex, including Gray’s own studio facilities and Gray’s Third Rail Studios.  This arrangement is expected to leverage NBCU’s extensive experience and expertise in managing studio lots, ensure consistency across all of the studio operations and leasing opportunities for third parties, and permit Gray to retain its focus on its own video production business.

Construction began on roadways and infrastructure throughout the Assembly Studios complex last summer, and construction began on studio buildings for Gray’s Swirl Films late last year. Construction on NBCU’s facilities is expected to begin this summer. At that time, Gray expects over 1,200 individuals will be employed in construction jobs on-site. Gray anticipates that the Assembly Studios complex will be completed in the second half of 2023, thereby enabling Gray’s Swirl Films, NBCU and any third-party tenants to commence film and television productions in the new facilities before the end of next year. When fully operational, over 4,000 people will be expected to work within Assembly Studios and Third Rail Studios, and the productions filmed there will support thousands of additional new jobs in the community.

Outside of the Assembly Studios complex, current plans for Assembly Atlanta include mixed use and commercial buildings around a town center concept when completed in the next five to seven years. The long-term development plans include a boutique hotel, townhouses and apartments, entertainment venues including e-gaming facilities, a conference center, and office buildings. The properties, including the landscaped streets, parks, and green space, will be designed to enable location shooting throughout Assembly Atlanta for productions filming within the soundstages of Assembly Studios. Gray anticipates selling and leasing various parcels to third parties to construct and operate the retail, residential, office, and other amenities within the Assembly Atlanta complex outside of Assembly Studios.

In light of the agreements announced today and with construction at the site progressing ahead of schedule, Gray now updates its capital expenditure guidance related to Assembly Atlanta to a range of $130 million to $140 million in 2022, with approximately $80 million to $90 million of additional capital spending related to Assembly Atlanta in 2023. These capital expense amounts are net of currently anticipated proceeds from property sales and certain other incentive payments that Gray expects to receive this year.   

Rendering Above of Assembly Atlanta.

Rendering Above of an entrance to Assembly Studios.

About Gray:

Gray Television, Inc. is a multimedia company headquartered in Atlanta, Georgia. We are the nation’s largest owner of top-rated local television stations and digital assets in the United States that serve 113 television markets reaching approximately 36 percent of US television households. This portfolio includes 80 markets with the top-rated television station and 100 markets with the first and/or second highest rated television station. We also own video program companies Raycom Sports, Tupelo Honey, and PowerNation Studios, as well as Third Rail Studios. For further information, please visit www.gray.tv.

Forward-Looking Statements:

This press release contains certain forward-looking statements that are based largely on Gray’s current expectations and reflect various estimates and assumptions by Gray. These statements are all statements other than those of historical fact, and may be identified by words such as “estimates,” “expect,” “anticipate,” “will,” “implied,” “assume” and similar expressions. Forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results and achievements to differ materially from those expressed in such forward-looking statements. Such risks, trends and uncertainties, which in some instances are beyond Gray’s control, include Gray’s ability to complete Assembly Studios on the terms and within the timeframe currently contemplated or at all, whether expected benefits can be achieved on a timely basis or at all, estimates of future expenses and other future events. Gray is subject to additional risks and uncertainties described in Gray’s annual and quarterly reports filed with the Securities and Exchange Commission from time to time, including in the “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections contained therein, which reports are made publicly available via its website, www.gray.tv. Any forward-looking statements in this communication should be evaluated in light of these important risk factors. This press release reflects management’s views and expectations as of the date hereof. Except to the extent required by applicable law, Gray undertakes no obligation to update or revise any information contained in this communication beyond the date hereof, whether as a result of new information, future events or otherwise.

Gray Company Contacts:

Hilton H. Howell, Jr., Executive Chairman and Chief Executive Officer, 404-266-5513
Kevin P. Latek, Executive Vice President, Chief Legal and Development Officer, 404-266-8333

Gray Press Contacts:

Rick Burns, Vice President, Assembly Atlanta, LLC, 323-493-0123

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FAQ

What is Gray Television's recent partnership with NBCUniversal about?

Gray Television has partnered with NBCUniversal to create new production facilities at Assembly Atlanta, enhancing their operational capabilities.

How many jobs will the Assembly Atlanta development create?

The Assembly Atlanta development is expected to create over 4,000 jobs in the local area.

What is the estimated construction cost for Assembly Atlanta?

The capital expenditure for Assembly Atlanta is estimated between $130 million and $140 million for 2022.

When is the Assembly Studios complex expected to be completed?

The Assembly Studios complex is expected to be completed in the second half of 2023.

What facilities will the new studio complex include?

The new studio complex will include multiple soundstages, production office space, warehouses, and other essential amenities.