Continuing a small wave of TV station acquisitions, Media General and New Young Broadcasting have announced an all-stock deal to merge.
The new company, to be called Media General, will
own 30 stations in 27 markets, reaching 16.5 million homes -- about 14% of U.S. TV households. It is based in Richmond, Virginia.
Expected annual revenues are estimated at $605 million,
with about $115 million coming from political advertising. Media General’s 2011-2012 average revenues were $320 million, and Young’s were $219 million.
Media General will now
have about 11 CBS-affiliated stations, 9 NBC stations, 7 ABC outlets, and one Fox, CW and MNT each. Sixteen of the 30 stations are in top 75 U.S. markets.
The merger takes place a little
more than a year after Warren Buffett’s Berkshire Hathaway bought Media General’s newspapers.
Recently, the Baltimore-based Sinclair Broadcast Group made a number of deals,
acquiring TV stations from groups Fisher Communications, Titan, Barrington and Cox Media.
J. Stewart Bryan III, chairman of Media General, stated: "The combination provides immediate
accretion to free cash flow, a strong balance sheet, the opportunity to refinance debt at a much lower cost and attractive synergies."
Thomas J. Sullivan, executive chairman of New Young
Broadcasting, added: “This merger is compelling on many levels and will create a company with valuable strategic assets, significant financial resources and a deep team of talented and
experienced personnel.""TV Signal" photo from Shutterstock.