RICHMOND, Va. (AP/WRIC) – Combined, Nexstar and Media General reach 39 percent of U.S. households. Before 2016 ends, the two companies will be reaching those viewers under the same umbrella. It was announced Wednesday that Nexstar is buying the Richmond, Virginia-based TV station operator Media General.
In addition, Media General and the Meredith Corp. simultaneously announced that the two companies have terminated their previous merger agreement. As a result, Media General will have to pay $60 million in cash to Meredith Corp. Based in Des Moines, Iowa, Meredith operates TV stations and publishes magazines such as Parents and Better Homes and Gardens.
Nexstar said Wednesday that it will pay a mix of stock and cash that worth about $17.14 for each share of Media General, valuing the deal at about $2.2 billion. The deal is worth $4.6 billion when debt is included. When the deal closes, which is expected to happen in the third or fourth quarter of the year, Nexstar Broadcasting Group Inc. will change its name to Nexstar Media Group Inc.
Based in Irving, Texas, Nexstar operates programs or provides services to 107 television stations around the country reaching 58 markets (18 percent of all U.S. households). Nexstar is a diversified media company that specializes in leveraging localism to bring new services and value to consumers and advertisers through its traditional media, digital and mobile media platforms. The company’s portfolio includes affiliates of NBC, CBS, ABC, FOX, MyNetworkTV, The CW, Telemundo, Bounce TV, Me-TV, LATV, RTV, Estrella, This TV, Weather Nation Utah, Movies! and News/Weather.
Media General Inc., based in Richmond, Virginia, operates or services 71 TV stations. Together, the combined company will reach about 39 percent of U.S. households with televisions, Nexstar said.
The Nexstar Media Group will be one of the nation’s leading providers of local news, entertainment, sports, lifestyle and network programming and content through its broadcast and digital media platform with annual revenue in excess of $2.3 billion.
In addition, the transaction provides Media General shareholders with immediate value and the opportunity to participate in the near-and long-term upside of a stronger pure-play broadcasting company.
The combined company’s increased scale will allow advertisers and brands to benefit from a more comprehensive, integrated and competitive offering across all markets.
With 171 full power television stations in 100 markets and a diverse and growing digital media operation, Nexstar Media Group will reach to approximately 39 percent of all U.S. television households.
Until the transaction is completed Media General and Nexstar will remain separate companies and it will be business as usual for both companies.
8News is part of Media General.