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Friday, 7 June 2013

Media General and New Young Broadcasting Decided to Merge

Media General, the owner of 18 network-affiliated TV stations announced on 6 June 2013 that it will merge with New Young Broadcasting, which is a privately held company and operated 12 stations in all.

Media General that trades on New York Stock Exchange under the symbol MEG will make use of the stocks in order to purchase New Young Broadcasting. Combined company will retain the name of Media General. Combined Media General will operate in 27 markets in all and will reach 16.5 million households, or around 14 percent of US television households.

After this merger, Media General will have 11 stations affiliated with CBS, seven with ABC, nine with NBC, one with MyNetworkTV, one with CW and one with Fox 1.

According to the terms of the deal, New Young shareholders will get majority ownership. However, the Media General will have its majority on the board seats as well as its own CEO. This means that new company will have 67.5 percent by New Young shareholders as well as 32.5 percent by Media General shareholders.

The present CEO of Media General, George Mahoney will also be the CEO of the combined company. The new combined company will have its headquarters at Richmond, Virginia.

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