Mixed media

8 September 2015 By Jennifer Saba Follow @jennifersaba

The owner of some 71 local U.S. stations is buying Meredith for $3.1 bln. Media General will get 17 more TV properties. But it will also be stuck with a raft of magazines. The modest 12 pct premium and decent synergies provide some buffer against the challenge of selling them.

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U.S. local television specialist Media General on Sept. 8 agreed to buy national magazine and local TV group Meredith for $3.1 billion, representing a 12 percent premium to Meredith’s closing stock price on Sept. 4 of $45.94.

Media General operates and services about 71 TV stations, while Meredith has 17 stations and publishes magazines including Shape, Family Circle, and Better Homes and Gardens.

Under the terms of the deal, Meredith shareholders will receive cash and stock valued at $51.53 per share.

Media General will form a new holding company called Meredith Media General. Media General shareholders will receive one share of the new holding company for each share of Media General they own upon closing. Meredith shareholders will get $34.57 per share in cash and 1.5214 shares of the new holding company.

Media General shareholders will own 65 percent of the new company and Meredith shareholders will own 35 percent.

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