Carl Salas of Moody's Investor Relations said the transaction "is special because you get meaningful synergies from reduced cost of debt."

The company would increase its territory, the analyst added. It also stands to gain leverage in negotiations with cable and satellite companies and reduce other vendor costs. There could be other benefits if it pursues stations in markets where it already operates.

Media General would gain duopolies in Albany, N.Y., and Lansing, Mich. The company already has two stations in Augusta, Ga., and said that it plans to increase the number of markets in which it has multiple outlets.

"With the footprint that we've got one of the first things we'll be looking for going forward are additional duopoly opportunities," Mahoney said. "We're now in a position to do some searching for those kinds of things and we shall."

Media General retained Marcos Torres of RBC Capital Markets LLC and Fried, Frank, Harris, Shriver & Jacobson LLP lawyers Philip Richter, John Sorkin, Donald Carleen, Michael Alter, Gus Atiyah and Michael Levitt.

Stephens Inc. bankers Kerry North, Phyllis Riggins, Ryan Murphy, Dan Parfitt and John Bennett advised the independent members of Media General's board, which received counsel from Gibson, Dunn & Crutcher LLP lawyers Stephen Glover, Alisa Babitz and Renee Strandness.

Stephens also provided Media General's full board with a fairness opinion. Advising New Young were Wells Fargo Securities LLC and Debevoise & Plimpton LLP lawyers Jonathan Levitsky, Peter Furci, Elizabeth Pagel Serebransky, Amy Adams, Kamal Agrawal and Andrew Hirsch.

Written by Chris Nolter in New York

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