Media General Buys Meredith

mgLooks like the big media companies continue to shuffle the deck. On September 8th, Meredith Corp. and Media General announced a merger. Together it will be the third-largest owner of network affiliates – 88 stations in 54 markets.

While the new holding company will be called “Meredith Media General”, its clear that Media General is taking over Meredith by buying 65 percent of Meredith for $2.4 billion. According to sources close to the deal, the combined company will have revenues of roughly $3 billion and $900 million in EBITDA.

The deal is a surprise, since Meredith has been on a buying spree itself for the past 18 months, picking up Shape, MyWedding and the Martha Stuart Living brands among others.

A Meredith spokesman said, “the combination of Meredith and Media General creates a powerful multiplatform and diversified media company with best-in-class media assets and a strong financial profile…. A key part of the strength of the expanded platform is access to a female audience of 100 million American women, including over 60 percent of U.S. Millennial women. This represents a significant opportunity for digital expansion for businesses presently operated by both companies. The two companies will be working together over the coming weeks and months to begin integration planning so it is too early to speculate on specifics.”