US broadcasters Media General, LIN Media to merge in $1.6-bn deal
21 Mar 2014
Media General Inc, a US broadcasting and digital media company, today struck a deal to buy LIN Media LLC, for $1.6 billion to create the second-largest pure-play television broadcasting company.
LIN Media shareholders will receive $763 million in cash and 49.5 million shares in stock, amounting to $27.82 per LIN share, based on Media General's trailing 20-day volume weighted average stock price on 19 March 2014.
The total deal value is $2.6 billion, including LIN Media's debt of $968 million.
Post closing, LIN Media shareholders will own approximately 36 per cent of the combined company, while Media General shareholders will own approximately 64 per cent.
Media General's chairman Stewart Bryan will remain chairman of the combined company, while LIN Media's CEO Vincent Sadusky will be the CEO.
The combined company will include 74 network-affiliated owned or serviced TV stations across 46 markets and will reach 26.5 million, or approximately 23 per cent, of US TV households.
The companies' current TV portfolio includes 33 Big Four network-affiliated TV stations located in the Top 75 designated market areas, 39 Big Four network-affiliated TV stations ranked #1 or #2 in their respective markets and the second-largest CBS affiliate group in the US, measured by revenue.
Media General said that it expects some of these stations to be swapped or divested in order to address regulatory concerns.
In addition to the websites associated with each TV station, Media General's digital media portfolio will include LIN Digital, LIN Mobile, Dedicated Media, HYFN, Nami Media and Federated Media.
Media General expects around $70 million of annual run-rate synergies within three years after closing.
Media General is a leading local television broadcasting and digital media company owning or operating 31 network-affiliated broadcast television stations and their associated digital media and mobile platforms, in 28 markets.
These stations reach 16.5 million, or 14 per cent of US TV households. Sixteen of the 31 stations are located in the top 75 designated market areas.
The Virginia-based company first entered the local television business in 1955 when it launched WFLA in Tampa, Florida as an NBC affiliate.
The company subsequently expanded its station portfolio through the 2013 acquisition of Tennessee-based Young Broadcasting, and combined Media General's 18 stations and Young's 13 stations.
