Media General is buying Meredith

Media General is buying Meredith Corp. for about $2.4 billion in cash and stock, creating one of the largest owners of major network affiliates.

The combined 88 television stations in 54 markets will be able to reach 30% of U.S. households, the companies said.

The new company, called Meredith Media General, will also own magazines like Better Homes and Gardens, Parents and Shape, as well as Allrecipes.com.

Meredith shareholders will receive cash and stock valued at $51.53 per share. That’s a 12% premium to the company’s Friday closing price of $45.94.

Meredith Chief Executive Steve Lacy will serve as CEO and president of the combined company.

The board will include 12 members, eight appointed by Media General Inc. and four by Meredith. Media General Chairman J. Stewart Bryan III will serve as chairman of the combined business.

Meredith Media General will maintain corporate and executive offices in Des Moines, Iowa, and Richmond, Va.

The companies expect more than $80 million in total savings within the first two years.

Both companies’ boards approved the deal, which still needs approval from shareholders and regulators.

Meredith shares rose $4.53, nearly 10%, to $50.47 while Media General fell 67 cents, or 6%, to $10.48.