×
You will be redirected back to your article in seconds

TV Station Mega Merger: Media General Sets $2.4 Billion Acquisition of Meredith Corp.

Media General has set a $2.4 billion acquisition of Meredith Corp., creating a TV station colossus that will rank as the nation’s third-largest owner of network affiliates.

The cash and stock deal was unveiled Tuesday. Meredith Corp. CEO Steve Lacy will become CEO of the combined Meredith Media General entity, with Media General chairman J. Stewart Bryan III remaining in the same role. The deal is expected to close next June.

Meredith Media General will own 88 stations in 54 markets — including 40 Big Four network affils in top 75 markets. It’s projected to have earnings of more than $900 million on revenue of more than $3 billion. The companies expect to squeeze out $80 million in cost savings within the first two years.

The combination of Meredith and Media General continues the consolidation trend among TV stations that has led to handful of mega groups wielding renewed clout with networks and MVPD operators. But it comes at a time of business transition for local TV station owners, which has spurred broadcasters such as Tribune and Sinclair Broadcast Group to focus on grabbing market share through acquisitions.

Media General has been among the most aggressive station buyers in recent years, growing its profile dramatically in the TV biz. Last year it set a $1.6 billion deal for LIN Television, which grew the combined company to 74 TV stations. The company said it expects to sell or swap TV stations in six mid-sized markets, including Portland, Ore., and Nashville, to comply with FCC station ownership limits.

The Meredith deal also brings publishing assets including Better Homes and Gardens.

Lacy said the company would still be in the market for more TV stations.

“We are excited about the opportunity to create a powerful new multiplatform and diversified media company with significant operations on the local and national levels. This merger will create a strong and efficient company positioned to realize the significant earnings and cash flow potential of local broadcasting; leverage the unparalleled reach and rich content-creation capabilities of Meredith’s national brands; and capture the rapidly developing growth potential of the digital media space,” Lacy said. “It also positions Meredith Media General to deliver enhanced shareholder value and participate in future industry consolidation.”

Said Bryan: “This merger creates greater opportunities for profitable growth than either company could achieve on its own.”

 

More TV

  • Westworld Season 3 Trailer

    'Westworld' Season 3 Trailer Focuses on New Cast Member Aaron Paul

    Ahead of the final episode of “Game of Thrones,” HBO released the first trailer for the new season of another flagship show: “Westworld.” The first look at the third season of the sci-fi show puts the focus on new series regular Aaron Paul, best known for his run on “Breaking Bad.” The trailer doesn’t reveal [...]

  • Adam Lambert Libertine show, Front Row,

    Adam Lambert Does Double Performing Duty on 'Idol' as New Winner is Crowned

    A new “American Idol” winner was crowned Sunday night, but not before Adam Lambert returned to the stage for the season finale for a pair of performances that included his new single and a duet with eliminated contestant Dimitrius Graham Sunday. The show concluded with Louisiana teen Laine Hardy showered in confetti as he was [...]

  • Beyonce Emilia Clarke

    Emilia Clarke Worried Beyonce Would Hate Daenerys After 'Game of Thrones'' Final Season

    After eight seasons as the Mother of Dragons, “Game of Thrones” star Emilia Clarke has a lot of celebrity fans. But the most impressive? Probably Queen Bey. In a New Yorker interview posted after Sunday night’s series finale, Clarke revealed that she met Beyonce at an Oscars after-party hosted by the musician and her husband, [...]

  • Game of Thrones Finale

    Why the 'Game of Thrones' Finale Couldn't Have Satisfied Everyone

    The “Game of Thrones” finale may have achieved a strange feat: Aiming for fan service while being constrained, by its very nature, to the reality that it would end up pleasing only very few. The episode was larded with character touches designed for devotees — from a title, at long last, for fan favorite Bronn, [...]

  • Game of Thrones Finale

    'Game of Thrones': Celebrity Fans Have Mixed Reaction to Series Finale

    SPOILER ALERT: Do not keep reading if you have not seen the series finale of “Game of Thrones,” titled “The Iron Throne.”  Whether you loved it or hated it, the series finale of “Game of Thrones” was one for the history books. After the final episode aired Sunday night, fans across the globe took to [...]

  • ‘Game of Thrones’: 8 Shocking Moments

    ‘Game of Thrones’: 8 Shocking Moments From the Finale

    SPOILER ALERT: Do not keep reading if you have not seen the finale of “Game of Thrones.” Well, that’s it. After the “Game of Thrones” finale, many of us will likely emulate Jon Snow and just retire North of the Wall. It was billed as one of the biggest events in TV history, and showrunners [...]

  • Front row: CBS THIS MORNING co-hosts

    CBS Hurls New Anchor Team Into TV's Morning-News Wars

    News Team: Assemble. CBS News plans to hurl a new anchor squad into TV’s morning-news wars Monday when a different trio – Gayle King, Anthony Mason and Tony Dokoupil –  takes the helm at “CBS This Morning.” The A.M. effort that has won critical plaudits by focusing on harder news topics, like international affairs and [...]

More From Our Brands

Access exclusive content