Media General schedules vote on Young acquisition


Media GeneralA merger between television groups Media General and Young Broadcasting was announced at the back in June, and now MG is preparing to present the deal to its shareholders for their approval. A vote is scheduled for next month.

Shareholders will have the opportunity to weigh in on the deal 11/7/13. Shareholders must have held a piece of the company by 9/5/13 to qualify for participation.

“We are very excited about the prospects for the combined company,” said George L. Mahoney, president and chief executive of Media General.  “The business combination of Media General and Young is a transformational event that will benefit shareholders, employees and the communities we serve.  The combination provides immediate accretion to free cash flow, a strong balance sheet, the opportunity to refinance debt at a much lower cost, which is already committed, and attractive synergies. Young’s management and its owners share Media General’s commitment to quality local journalism and to operating top-rated TV stations, making this merger a unique and compelling combination with significant growth potential.”

The merging companies did not attach a specific value to the deal, but an RBR-TVBR analysis of the deal done with the able assistance of Moody’s Investors Service analyst Carl Salas pegged it at an estimated $1.7B, give or take. Click through for a complete description of how we arrived at that figure.

Here’s are the station lists as reported to the FCC.
Media General
WSLS-TV Roanoke VA
WBTW-TV Florence SC
WCBD-TV Charleston SC
WNCN-TV Goldsboro NC
WNCT-TV Greenville NC
WSPA-TV Spartanburg SC
WYCW-TV Asheville NC
WJBF-TV Augusta GA
WRBL-TV Columbus GA
WSAV-TV Savannah GA
WVTM-TV Birmingham AL
WHLT-TV Hattiesburg MS
WJTV-TV Jackson MS
WJHL-TV Johnson City TN
WCHM-TV Columbus OH
WJAR-TV Providence RI
Young Broadcasting
KRON-TV San Francisco CA
WKRN-TV Nashville TN
WATE-TV Knoxville TN
WRIC-TV Petersburg VA
WBAY-TV Green Bay WI
KWQC-TV Davenport IA
WLHS-TV Lansing MI
KELO-TV Sioux Falls SD
KDLO-TV Florence SD
KPLO-TV Reliance SD
KCLO-TV Rapid City SD
KLFY-TV Lafayette LA

MG said it will have 31 stations in 28 markets and reach about 14% of US TV households when the merger is completed.

It stated, “On a pro forma basis, the combined company’s 2012 revenues would have been approximately $588 million, including approximately $113 million of political revenues. Approximately $44 million of annual operating and financing synergies have been identified in connection with the transaction, which are expected to improve the operational and financial performance levels of the combined company. The combined company will have a strong balance sheet, including significant net operating loss carryforwards that will survive the transaction, and an enhanced credit profile.”