This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Media General, LIN Combine in $2.6B Deal

NEW YORK (The Deal) -- Media General (MEG - Get Report) said Friday it intends to acquire LIN Media (LIN) in a $2.6 billion cash, stock and debt deal that would create the nation's second largest "pure-play" television broadcasting company.

Terms of the deal call for Richmond-based Media General to pay $27.82 per share in cash and stock for LIN, a premium of 29% to the target's Thursday close, for total equity consideration of $1.6 billion. Media General will also assume about $968 million in debt.

The aggregate cash amount available to LIN shareholders in the deal is $763 million. Post-close, LIN holders would own about 36% of the combination.

TV station owners such as Gannett (GCI)Sinclair Broadcast Group (SBGI - Get Report), and Nexstar Broadcasting Group (NXST - Get Report) have been aggressively consolidating to increase their clout with cable operators, which pay to retransmit broadcasters' content, and the networks, which charge for programming they provide the stations.

Must Read: Warren Buffett's Warrants Shine in Media General Deal

The pace of TV deals may slow, because regulators have pushed back against deals that enabled broadcasters to skirt limits on station ownership by setting up partnerships. Sinclair said Thursday that it would rework its $985 million purchase of stations from Allbritton Communications.

Media General said that when combined with Austin, Texas-based LIN it would own or service 74 network-affiliated stations in 46 markets reaching about 23% of U.S. television households. The company said it expects to be forced to divest or swap certain stations to win regulatory approval for the merger.

The combined companies' $491 million in Ebitda would be second among TV broadcasters, exceeded only by Sinclair's $778 million. By number of stations, Media General and Lin would third behind Sinclair, with 166 stations, and Nexstar, with 108.

"Combining Media General and LIN Media will create the second largest pure-play TV broadcasting company in the United States, a financially strong organization that will have opportunities for profitable growth greater than either company could achieve on its own," said Media General chairman J. Stewart Bryan III. "Our two companies share a deep commitment to operating top-rated stations, to providing our local markets with excellent journalism and to engaging in meaningful ways with the communities we serve."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
LIN $25.00 0.00%
GCI $12.85 -3.70%
MEG $15.65 0.51%
NXST $56.50 1.20%
SBGI $28.20 -0.42%

Markets

Chart of I:DJI
DOW 17,745.98 -5.41 -0.03%
S&P 500 2,109.96 +1.39 0.07%
NASDAQ 5,132.1380 +20.4050 0.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs