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TV Station Mega Merger: Media General, LIN Set $1.6 Billion Deal (Variety)
Station groups Media General and LIN are poised to merge in a $1.6 billion cash and stock deal that will create the nation’s second-largest pure-play broadcast group. With LIN’s roughly $1 billion in debt included, the deal has an enterprise value of $2.6 billion. TVSpy The deal will bring together 74 stations which are either owned or operated by the two companies in 46 markets. Combined, the new company’s stations will reach 23 percent of U.S. TV households. THR The deal is the latest in the ongoing consolidation of the TV station business as broadcasters have looked for scale to strengthen them in dealings with networks and pay-TV operators and the like. Poynter / MediaWire It is just the latest in a flurry of acquisitions and mergers in the TV industry that has seen Belo broadcast and Gannett merge and earlier, Media General and Young Broadcasting combined forces. Other players including Meredith, Journal, Tribune, NBC Universal and Sinclair have been recent buyers, too. WSJ Greater scale should help the combined company garner higher revenue from fees it charges pay-TV providers to carry its signal, known as retransmission fees. It should also gain leverage in negotiations with media companies. These factors, plus the ability to expand LIN’s digital advertising business and savings from corporate overheard, underpin the companies’ projected $70 million in run-rate synergies over three years.