Media General to buy LIN in deal worth $1.6B LIN Media awoke with a jump.
The TV broadcaster’s stock rose 30 percent on news Media General is buying it in a cash and stock deal — financed by RBC Capital Markets — worth about $1.6 billion, the companies said Friday.
The combined entity would own and operate or service 74 stations, reaching 26.5 million households.
Media General said that it has offered about $27.82 for each LIN Media share, representing an 87 percent premium over LIN’s Thursday closing stock price.
LIN shareholders will own about 36 percent of the new company.
Vincent Sadusky, LIN’s president and CEO, will occupy the same position at the combined company. Media General Chairman J. Stewart Bryan III will continue to serve in that capacity.
The company will take the name Media General and its headquarters will stay in Richmond, Va.
Shares of LIN Media LLC leaped $6.37, or 30 percent, to $27.86 in morning trading on the news (closing at $26.32), while Media General Inc. shares rose $1.73, or 10 percent, to $19.07 (closing at $17.44).