The Media General/LIN Media nuptials are a go, as far as shareholders for each television group are concerned. Meanwhile, the pair issued revised expectations to consider prior to release of their Q3 earnings reports.
According to Marci Ryvicker of Wells Fargo Securities, Media General is expecting to be short of its predicted net revenue total by a good $5.6M, with a shortfall in cash flow of $6.2M tossed in for good measure. Details on the cause of the miss were not provided. LIN, on the other hand, is expected to fall within the range of Wall Street expectations.
But as we noted, shareholders of each company, in separate meetings, approved the deal.
Douglas W. McCormick, Chairman of the Board of LIN Media, said, “Our shareholders’ approval reinforces the compelling logic underpinning the merger of two successful broadcasters into one financially strong organization that will create opportunities to deliver even greater shareholder value and profitable growth.”
George L. Mahoney, President and Chief Executive Officer of Media General, said, “I am extremely pleased with the progress we are making in our integration planning, which will ensure a smooth transition for all of our shareholders. Filling key leadership positions is a significant achievement that paves the way to designing an operating model and organizational structure that will position Media General for success well into the future.”
The pair of companies announced key members of the company going forward, saying, “Upon closing of the transaction, Vincent L. Sadusky, LIN Media’s President and Chief Executive Officer, will become President and Chief Executive Officer of the new Media General. J. Stewart Bryan III will continue to serve as Chairman of the Board. Additional board members will include: Diana F. Cantor, Royal W. Carson III, H.C. Charles Diao, Dennis J. FitzSimons, Soohyung Kim, Douglas W. McCormick, John R. Muse, Wyndham Robertson and Thomas J. Sullivan. Four of the directors were designated from LIN Media and seven from Media General. Media General also announced that, upon closing of the transaction, the executive officers reporting to Mr. Sadusky will be James F. Woodward, Senior Vice President and Chief Financial Officer; Deborah A. McDermott, Senior Vice President and Chief Operating Officer; Robert S. Richter, Senior Vice President and Chief Digital Officer; and Andrew C. Carington, Vice President, General Counsel and Secretary.”