• by Wayne Friedman , March 21, 2014

Continuing the big TV station consolidation trend, Media General and LIN Media are merging to create what the companies say is the second-largest pure-play TV broadcasting company.

The proposed deal of $1.6 billion will create a TV station group of 74 stations across 46 markets, reaching 23% of U.S. TV households.  

LIN Media stockholders will receive $763M in cash and 49.5M shares of Media General. The deal also includes the assumption of $968 million of LIN Media debt.

Upon closing of the transaction, LIN Media President/CEO Vincent Sadusky will become president/chief executive officer of the new company, to be named Media General. J. Stewart Bryan III, chief executive officer of Media General, will continue to serve as chairman of the board. 

The new company will be based in Richmond, Va. -- Media General corporate headquarters. LIN Media is based in Austin, Texas.

In midday trading, Media General’s stock rose 8.1% to $18.75; LIN Media soared 25% to $26.92.

This is the second-largest TV station deal for Media General in a year. In June 2013, Media General announced a merger with Young Broadcasting. At that time, Media General had owned 18 network-affiliated stations and Young had owned or operated 12 network-affiliated stations.  

Within the last two years, a number of major TV station groups have merged or been acquired, ramping up stock prices in the TV station category.

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