LIN TV Corp. Updates Its Intention Regarding The Timing For Completing Its Reorganization Into A Limited Liability Company
LIN TV Corp. (“LIN”; NYSE: TVL), a local multimedia company, has enjoyed an increase of approximately 32% in the trading price of its class A common stock since announcing its entry into a merger agreement with LIN Media LLC, a recently formed, wholly-owned limited liability company subsidiary (“LIN Media”). The merger will allow LIN to convert its form of organization from a corporation to a limited liability company. LIN has solicited proxies from its stockholders to vote on the adoption of the merger agreement, and approve the merger of LIN into LIN Media, at a special meeting of stockholders to be held on July 30, 2013.
As LIN has previously disclosed, the benefit to LIN of completing the merger is the ability to reduce all or a portion of a $573 million capital gain that resulted from LIN’s sale of a minority interest in a joint venture in February 2013. The amount of the reduction is directly related to, and is reduced by, an increase in the trading price of LIN’s class A common stock. As LIN has previously communicated to its stockholders and as a result of the recent increase in the current trading price of LIN’s class A common stock, LIN’s board of directors may decide to defer the completion of the merger until a later time (or abandon it altogether) as permitted by the merger agreement after LIN’s stockholders vote to adopt the merger agreement at the special meeting. LIN’s board of directors will continue to evaluate the appropriate timing for completing the merger, whether promptly after its stockholders vote to adopt the merger agreement or a later time.
LIN is a local multimedia company that operates or services 43 television stations and seven digital channels in 23 U.S. markets, along with a diverse portfolio of web sites, apps and mobile products that make it more convenient to access its unique and relevant content on multiple screens.
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