The combination of Media General and LIN will create a local broadcasting giant that will own and operate 74 television stations in 46 mostly midsized and smaller markets. Overall, Media General and LIN will have a nationwide reach of about 23%.
"The merger of two highly respected broadcasters with superior television and digital assets creates maximum value for shareholders and provides us the scale, breadth and resources to compete more effectively in the rapidly evolving media landscape," said LIN Media President Vincent Sadusky in a statement.
After the sale closes, Sadusky will become CEO of the combined entity with Media General Chairman J. Stewart Bryan staying on in his post.
Under the terms of the deal, LIN shareholders will get cash and stock worth about $27.82 for each of their shares, an almost 30% premium over LIN's Thursday closing price. LIN and Media General said the enterprise value of the sale, including debt, is $2.6 billion.
The deal, which is subject to approval by the
Over the last few years, several broadcasters have combined including
By consolidation, the combined stations will be in a better position to negotiate programming and distribution agreements as well as share resources.
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