Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Media General to buy LIN in $2.6 bn US broadcast deal  Join our daily free Newsletter

MENAFN - AFP - 21/03/2014
No. of Ratings : 0
Add to Mixx!

(MENAFN - AFP) US broadcaster Media General said Friday it will buy LIN Media in a 2.6 billion deal that creates the nation's second-largest television broadcasting company and a digital media powerhouse.The merged company will own and operate or service 74 television stations across 46 markets, and serve some 26.5 million households, or 23 percent of the US market, Media General said in a statement.The stock-and-cash merger pays about LIN 27.82 per share, a 28 percent premium for the multimedia company.Media General will pay 763 million in cash and the equivalent of 858 million in shares, based on its closing share price on Thursday.In addition, Media General will assume LIN's debt of 968 million, bringing the total value of the transaction to 2.6 billion. Media General, partly owned by tycoon Warren Buffett's Berkshire Hathaway, will form a new holding company that will be named Media General."Combining Media General and LIN Media will create the second-largest pure-play TV broadcasting company in the United States, a financially strong organization that will have opportunities for profitable growth greater than either company could achieve on its own," Media General chairman J. Stewart Bryan said in the statement."The prospects for digital media growth are particularly exciting."In addition to the websites associated with each TV station, the new Media General will have a digital media portfolio that includes LIN Digital, LIN Mobile, Dedicated Media, HYFN, Nami Media and Federated Media.LIN will own about 36 percent of the new company, which will remain headquartered in Richmond, Virginia. General Media noted that some of the TV stations may have to swapped or sold to address regulatory issues.The deal is subject to shareholders and regulatory approval. The companies expect the transaction to close in early 2015.Investors liked the deal. Shares in Media General surged 4.7 percent to 18.15 and LIN surged 22.1 percent to 26.23.The new company will rank second to Tribune Company, which became the largest US commercial TV station owner in 2013 after buying Local TV for 2.7 billion in cash.Media General had been in the newspaper business for more than 160 years when it started selling off newspapers in 2012 as the industry struggled in the face of digital competition.It sold 63 newspapers to Buffett's Berkshire Hathaway for 142 million in cash, saying it would use the proceeds to pay down debt. Berkshire holds a stake in Media General.



  MENA News Headlines
 Oct 10 2015 - Al Masah plans USD299m healthcare expansion across GulfMENAFN
(MENAFN) Al Masah Capital Limited has revealed plans to invest around USD299 million to support the growth and regional expansion of its newly-rebranded healthcare private equity initiative.The ...

 Oct 10 2015 - UAE Eagle Hills starts work on USD3b Belgrade Waterfront projectMENAFN
(MENAFN) Eagle Hills, a UAE-based private investment and real estate development company has announced the start of construction of its flagship development in Belgrade.Belgrade Waterfront, the ...

 Oct 10 2015 - Dubai's hotel revenues down 10.1 percent in AugustMENAFN
(MENAFN) Four- and five-star hotels in Dubai reported weakening performance levels in August, with revenue per available room (RevPAR) declining 10.1 percent to USD147.45.Figures from hospitality ...

 Oct 10 2015 - Saudi-Celebrity clockmaker thanks KSA on arrivalArab News
(MENAFN - Arab News)JEDDAH: Talented American student of Sudanese origin Ahmed Mohammed Al-Hassan arrived in Jeddah on Friday morning to perform Umrah and visit his relatives. The Kingdom last week ...

 Oct 10 2015 - Israelis worried but defiant amid wave of stabbingsGulf Times
(MENAFN - Gulf Times) Israelis are deeply unnerved in the midst of a spate of stabbings that have brought back memories of previous Palestinian uprisings, but say they are ready to "confront" any ...

 Oct 10 2015 - Kingdom job seekers' paradiseArab News
(MENAFN - Arab News)JEDDAH: The Eastern Province Riyadh and Jeddah are among the most sought after locations for job seekers in the Middle East North Africa (MENA) region a new study has found. The ...

 Oct 10 2015 - Saudi summons Czech envoy over 'Satanic Verses'Gulf Times
(MENAFN - Gulf Times) Saudi Arabia has summoned the Czech ambassador over a translation of British writer Salman Rushdie's controversial book "Satanic Verses", official media said on Friday. The ...

 Oct 10 2015 - Libya foes urged to sign long-awaited peace dealGulf Times
(MENAFN - Gulf Times) World leaders urged Libya's warring parties yesterday to sign a proposed peace deal installing a national unity government, after a cool response from some lawmakers in the ...

 Oct 10 2015 - Coalition warplanes bomb Yemen rebelsGulf Times
(MENAFN - Gulf Times) Warplanes from the Saudi-led coalition raided positions of the Iran-backed Shia insurgents east of the rebel-held capital yesterday, military sources said. The air strikes ...

 Oct 10 2015 - US halts failed programme to train Syrian rebel unitsGulf Times
(MENAFN - Gulf Times) Washington was forced yesterday to admit the failure of its plan to create Syrian rebel units to fight Islamic State, vowing instead to arm select local leaders. White House and ...




Click to Apply


Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Economic Calendar
Financial Glossary

Financial Calculators

RSS Feeds [XML]

Corporate Monitor


Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters

© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help