Media General to Acquire LIN Media for $1.6 Billion

RICHMOND: Media General and LIN Media are planning to merge, creating the second largest pure-play TV broadcasting company in the U.S.

Together, the companies will own and operate 74 stations across 46 U.S. markets reaching approximately 26.5 million households. The new operation after the merger will be named Media General. The shareholders of LIN are expected to receive aggregate consideration valued at $1.6 billion in a combination of stock and cash.

Media General Chairman J. Stewart Bryan III said, “Combining Media General and LIN Media will create the second largest pure-play TV broadcasting company in the United States, a financially strong organization that will have opportunities for profitable growth greater than either company could achieve on its own. Our two companies share a deep commitment to operating top-rated stations, to providing our local markets with excellent journalism and to engaging in meaningful ways with the communities we serve. The prospects for digital media growth are particularly exciting. I look forward to welcoming Vince and LIN Media’s employees to Media General.”

Douglas W. McCormick, the chairman of the board of LIN Media, said, “We are pleased to have found an outstanding strategic business partner in Media General, with its strong stations, diverse footprint and commitment to lead the industry. Vince and his team have done an exceptional job growing and evolving LIN Media over the years to be one of the most innovative and successful multimedia companies in the business. This merger will create a stronger, more efficient company that can capitalize on its position of great strength. Importantly, it will provide shareholders of both companies with a compelling opportunity to participate in the long-term upside potential of the combined company.”

George L. Mahoney, the president and CEO of Media General, said, “This merger is a game-changing opportunity for both companies, substantially increasing shareholder value, providing a strong balance sheet and creating immediate and very significant free-cash flow that will enable further growth. We’ve long admired LIN Media and, as we’ve gotten to know their organization better as this transaction has developed, we are more certain than ever that our shared values and common culture will benefit both our stations and the communities we serve. We look forward to a seamless integration of the two companies as we also deliver quickly on the synergies we have identified. It is a terrific transaction.”

Vincent L. Sadusky, the president and CEO of LIN Media, said, “This is an exciting and historic day for both companies. 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. Together, we will be able to better serve our local communities throughout our significant and diverse geographic footprint and further grow our national digital business. I am honored to lead our new company, deliver important synergies and achieve new levels of success.”