Media General, Inc. (NYSE: MEG) has announced it will buy Meredith Corp. (NYSE: MDP) for $2.4 billion. The new multiplatform media company will be called Meredith Media General. Media General operates TV stations in Indianapolis, Fort Wayne, Terre Haute and Lafayette. The stations are WISH/WNDY, WANE, WTHI and WLFI.

“This merger creates greater opportunities for profitable growth than either company could achieve on its own. 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,” Media General Chairman J. Stewart Bryan III said. 

“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. It also positions Meredith Media General to deliver enhanced shareholder value and participate in future industry consolidation,” Meredith Chief Executive Officer Steve Lacy said. 

Officials say Meredith Media General will be the third-largest local television station owner, initially with 88 stations across 54 markets.

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