Texas-based Nexstar Broadcasting Group Inc. (Nasdaq: NXST) has announced a definitive merger agreement to acquire Virginia-based Media General Inc. (NYSE: MEG). Both companies operate television stations in several Indiana cities.
The transaction is worth $4.6 billion in cash and stock. The agreement was made after a previously announced merger between Media General and Meredith Corporation (NYSE: MDP) was terminated. Meredith will receive a $60 million termination fee as part of the merger agreement with Media General.
"The acquisition of Media General’s broadcasting and digital media assets represent a transformational growth opportunity for Nexstar and is strategically and financially compelling," said Perry Sook, CEO of Nexstar. "The transaction increases Nexstar’s broadcast portfolio by approximately two thirds with very limited overlap with our existing properties, more than doubles our audience reach and offers synergies related to the increased scale of the combined digital media operations."
Nexstar owns stations in Evansville (WTVW, WEHT), Fort Wayne (WFFT) and Terre Haute (WTWO, WAWV). Media General owns WANE in Fort Wayne, WISH in Indianapolis, WLFI in Lafayette and WTHI in Terre Haute.
The merger is expected to be completed in late third quarter or early fourth quarter 2016. The deal is subject to a vote by stockholders of both companies, FCC and other regulatory approvals as well as customary closing conditions.