Media General To Acquire Meredith TV Stations

(Reuters) -- Media General Inc Tuesday said it would buy diversified media company Meredith Corp for about $2.34 billion to create the third-largest local TV station owner in the United States.

The cash and stock offer of $51.53 per share is a premium of about 12 percent to Meredith's Friday close.

The combined company, to be named Meredith Media General, will initially have 88 TV stations that reach 30 percent of U.S. TV households, the companies said on Tuesday.

Media General shareholders will receive one share of the new company for each share held. Meredith shareholders will receive $34.57 in cash and 1.5214 shares of the new company for each share held.

Media General shareholders will own about 65 percent of the new company after the transaction closes, with Meredith shareholders holding the rest.

Including debt, the deal is valued at about $3.1 billion.

Media General operates and services about 71 TV stations. The companies said they would divest or swap TV stations in six markets to get regulatory approval for the deal.

The acquisition is Media General's second major deal in less than a year. The Richmond, Virginia-based company bought LIN Media for $1.6 billion in December.