Media General will get bigger
Owner of three Austin stations buys Meredith Corp. for $2.4 billion.
The operator of three Austin television stations — already one of the largest broadcasters in the country — is getting even bigger.
Richmond, Va.-based Media General said Tuesday that it is buying Des Moines, Iowabased Meredith Corp. for $2.4 billion. The transaction still requires the approval of federal regulators.
The combined company, which will be known as Meredith Media General, will be the third-largest owner of major network affiliates in the United States, with 88 TV stations in 54 cities nationwide, including NBC affiliate KXAN, CW affiliate KNVA and MyNetworkTV affiliate KBVO in Austin.
The Austin stations were formerly operated by LIN Media, an Austin-based company that Media General acquired for $1.6 billion last year.
A number of LIN Media’s corporate employees stayed with Media General and continue to have offices in Austin.
Pre-merger, Media General has 71 stations, while Meredith has 17. The Meredith sta-
tions are primarily in larger markets, such as Atlanta, Phoenix and St. Louis. Stations in six overlapping markets — Portland, Ore.; Nashville, Tenn.; Hartford, Conn.; Greenville, S.C.; Mobile, Ala.; and Springfield, Mass. — will be sold or swapped to other broadcasters to appease federal regulators, the companies said.
“This merger creates greater opportunities for profitable growth than either company could achieve on its own,” Media General Chairman J. Stewart Bryan III said in a written statement. “Importantly, shareholders of both companies will benefit from the upside potential of a diversified and strategically well-positioned media company with a strong financial profile and the ability to generate significant free cash flow.”
Meredith Corp. CEO Steve Lacy will serve as Meredith Media General’s CEO.
“We are excited about the opportunity to create a powerful new multiplatform and diversified media company with significant operations on the local and national levels,” Lacy said. “This merger will create a strong and efficient company positioned to realize the significant earnings and cash flow potential of local broadcasting; leverage the unparalleled reach and rich content-creation capabilities of Meredith’s national brands; and capture the rapidly developing growth potential of the digital media space. It also positions Meredith Media Gen- eral to deliver enhanced shareholder value and participate in future industry consolidation.”
KXAN, KNVA and KBVO aren’t the only Austin TV stations to change hands in recent years. CBS affiliate KEYE was sold to Sinclair Broadcast Group in 2011, while USA Today publisher Gannett’s broadcasting division (now known as Tegna) acquired ABC affiliate KVUE in 2013.