Media General to Buy Meredith Corp. for $2.4 Bln

Dow Jones Newswires

Television-station owner Media General Inc. on Tuesday said it agreed to buy magazine publisher Meredith Corp. for about $2.4 billion in cash and stock. The offer of $51.53 a share is a 12% premium to Meredith's closing price on Friday. Including debt, the deal is valued at $3.1 billion. Media General operates or services 71 TV stations, while Meredith owns magazines such as Better Homes & Gardens and Family Circle and has 17 television stations. The combined company, which will be called Meredith Media General, will have about $3 billion in annual revenue. Media General shareholders will own about 65% of the new company, while Meredith shareholders will own about 35%. The companies said they expect $80 million in synergies within the first two years. Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com

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