Media General, Inc. will acquire Meredith Corp. in a cash and stock transaction valued at $2.4 billion, Media General announced Tuesday.
The merger will create a new multiplatform media company to be known as Meredith Media General. The new company will be the third-largest local television station owner, initially with 88 television stations across 54 markets that reach 30 percent – or approximately 34 million – U.S. TV households.
It will include 40 Big Four network-affiliated TV stations located in the top 75 designated market areas (DMAs). Stations in six markets will be swapped or otherwise divested in order to address regulatory considerations. These markets are: Portland, OR; Nashville, TN; Hartford-New Haven, CT; Greenville-Spartanburg, SC-Asheville, NC; Mobile, AL-Pensacola, FL; and Springfield, MA.
Upon the closing, the Board of Directors will consist of 12 directors — eight appointed by Media General and four appointed by Meredith. J. Stewart Bryan III, current Media General chairman, will be chairman of Meredith Media General.
Stephen M. Lacy will lead Meredith Media General as CEO and president. Joseph H. Ceryanec will be the CFO. The balance of Meredith Media General’s senior management team will be a combination of the two existing executive teams. The company will maintain corporate and executive offices in Des Moines and Richmond. Meredith Media General will be incorporated in Virginia.
“This merger creates greater opportunities for profitable growth than either company could achieve on its own,” Media General chairman J. Stewart Bryan III said. “Importantly, shareholders of both companies will benefit from the upside potential of a diversified and strategically well-positioned media company with a strong financial profile and the ability to generate significant free cash flow.”