CircleSeven 1944 Posted March 21, 2014 Share Posted March 21, 2014 LIN has announced that it will merge with Media General for $1.6B. The deal is subject to certain divestitures. Current LIN shareholders would hold 36% of the company, while existing Media General shareholders will keep 64%. Post-Merger it will keep the Media General name. EDIT: According to the release, LIN will have some sort of "Window-Shop" period for third-party entities who might want to send an acquisition inquiry; and LIN will be in discussions with the third party entities that submitted their own proposals. The window shop period will end on April 25. Any successful bidder who comes with a proposal during that window-shop and makes a deal prior to May 15, will only bear a $26.6M break-up fee. However, any bidder who didn't make a proposal during the window-shop, or not made a deal prior to May 15, the break-up fee will be doubled to $57.3M. ____________________________ There are a boatload of overlaps. Where MG & LIN currently have stations, those overlaps are in five markets (Birmingham, Providence, Mobile, Green Bay, Savannah (the latter four are LIN duo)), not to mention the cities where LIN have existing shells in seven of those markets (Austin, Albuquerque, Providence, Dayton, Savannah, Youngstown & Topeka) while Media General has shells in two markets (Albany, NY & Lansing). I swear that the heavy speculation back in January that LIN & Meredith were talking, which would've poised only two overlapped markets. Now we'd just talked about yesterday Sinclair announced that will divest it stations in the overlapped markets. It would almost for certain that the mega-MG would have to divest it stations in those overlapped markets. And since they'd said the the deal would be closed in early 2015, I wouldn't be shocked if we don't see them filing the paperwork until those third party deals are made. Link to comment Share on other sites More sharing options...
Action Newsroom 1149 Posted March 21, 2014 Share Posted March 21, 2014 Wow. Can't say I'm not shocked. This is the second time that MG merged with something else. I wouldn't be surprised if they did this again, with--probably Granite or Newport, I don't know... Link to comment Share on other sites More sharing options...
Rusty Muck 4157 Posted March 21, 2014 Share Posted March 21, 2014 This boosts MG's footprint substantially in the Western US and Hawaii. Suddenly KRON isn't completely isolated from the rest of the MG chain as before. WKBN-TV - and LMA partner WYTV - in Youngstown would tentatively become sister stations to Columbus's WCMH with this merger. Link to comment Share on other sites More sharing options...
Nelson R. 559 Posted March 21, 2014 Share Posted March 21, 2014 So wow this would create a triopoly in Savannah between WASV, WJCL and WTGS. Have to think WJCL will get spun off. EDIT: I see where it is just an SSA between WJCL and WTGS. Link to comment Share on other sites More sharing options...
promoguy98 252 Posted March 21, 2014 Share Posted March 21, 2014 Whoaaa! Holy Moly... never saw that one coming! Link to comment Share on other sites More sharing options...
hathawaynson2 38 Posted March 21, 2014 Share Posted March 21, 2014 Whoa! I did not see this coming until today. I Thought Meredith and like were talking about merging and splitting up the overlaps for a few months but an full merger? Wow! Just wow! Next question is: what's going to happen with the overlaps? Link to comment Share on other sites More sharing options...
GoldenShine9 1509 Posted March 21, 2014 Share Posted March 21, 2014 I saw LIN being a seller, but with Media General??? Whoa! I figured Scripps or Meredith was most likely. Link to comment Share on other sites More sharing options...
GoldenShine9 1509 Posted March 21, 2014 Share Posted March 21, 2014 The conflicts: Birmingham - WVTM and WIAT Green Bay - WBAY and WLUK/WCWF Mobile - WKRG and WALA/WFNA Providence - WJAR and WPRI/WNAC Savannah - WSAV and WJCL/WTGS In most cases, I think MG will hold the existing station and sell off the acquiring station. Maybe in Birmingham they might do the switcheroo though. Who could acquire the loose assets though? The FCC shouldn't worry too much about "status quo" shells IMO. They should focus on new shell situations. Link to comment Share on other sites More sharing options...
ColumbusNewsFan 217 Posted March 21, 2014 Share Posted March 21, 2014 This boosts MG's footprint substantially in the Western US and Hawaii. Suddenly KRON isn't completely isolated from the rest of the MG chain as before. WKBN-TV - and LMA partner WYTV - in Youngstown would tentatively become sister stations to Columbus's WCMH with this merger. Also, that gives WCMH a sister station in Dayton with WDTN as well. What a deal for MG and now that station is now going for the crapper because it's MG... The company that don't spend nothing at all on their news product. Link to comment Share on other sites More sharing options...
mike91 66 Posted March 21, 2014 Share Posted March 21, 2014 I would think that they would keep WLUK in Green Bay, because the Packers coverage would be more lucrative (don't think FOX will go into a market that low even if it is an NFC market) but other than that, I would say they would probably keep the MG stations in other conflicted areas. Link to comment Share on other sites More sharing options...
GoldenShine9 1509 Posted March 21, 2014 Share Posted March 21, 2014 Should a Speculatron thread be made on what happens with the conflicting assets? Link to comment Share on other sites More sharing options...
GoldenShine9 1509 Posted March 21, 2014 Share Posted March 21, 2014 The news release mentions "subject to certain regulatory divestitures". That suggests they are prepared to sell off conflicting stations, and not hold them in shells. Link to comment Share on other sites More sharing options...
WXmanTim 88 Posted March 21, 2014 Share Posted March 21, 2014 So in Birmingham, MG gives up WIAT... Waits, what, 5 or 6 years only to get it back (and after its done a complete 180). I swear I'm hearing merry go round music playing... Link to comment Share on other sites More sharing options...
ToriElectra 291 Posted March 21, 2014 Share Posted March 21, 2014 I didn't see this coming, so soon after the Young merger. Is the merged company going to retain the LIN name or the MG name? Link to comment Share on other sites More sharing options...
CircleSeven 1944 Posted March 21, 2014 Author Share Posted March 21, 2014 I didn't see this coming, so soon after the Young merger. Is the merged company going to retain the LIN name or the MG name? Media General will be the post-merger name. Just like the Young deal. Link to comment Share on other sites More sharing options...
tyrannical bastard 3442 Posted March 21, 2014 Share Posted March 21, 2014 I expect Raycom to make a strong play for WKRG....this will be the final piece in their "Alabama News Network" in their home state. Link to comment Share on other sites More sharing options...
TennTV1983 742 Posted March 21, 2014 Share Posted March 21, 2014 The conflicts: Birmingham - WVTM and WIAT Green Bay - WBAY and WLUK/WCWF Mobile - WKRG and WALA/WFNA Providence - WJAR and WPRI/WNAC Savannah - WSAV and WJCL/WTGS In most cases, I think MG will hold the existing station and sell off the acquiring station. Maybe in Birmingham they might do the switcheroo though. Who could acquire the loose assets though? The FCC shouldn't worry too much about "status quo" shells IMO. They should focus on new shell situations. Barring any other unexpected mergers, we could possibly see either Raycom, Scripps, Nexstar, Meredith or Gray go after some of those stations that will have to be divested after the merger. - Raycom makes the most sense for either WKRG or WALA, as it would complete "Alabama's News Source" on a state level for them (Alabama News Network was already taken by WAKA/WNCF in Montgomery, ironically right in their backyard). - Scripps or Meredith would likely be in play for one of the Providence or Birmingham stations, with Gray likely being a suitor for the Savannah and Green Bay stations. - Nexstar would be the dark horse in all of this, as they have no conflicts in all of those markets except for Green Bay. Link to comment Share on other sites More sharing options...
damien6786 9 Posted March 21, 2014 Share Posted March 21, 2014 The conflicts: Birmingham - WVTM and WIAT Green Bay - WBAY and WLUK/WCWF Mobile - WKRG and WALA/WFNA Providence - WJAR and WPRI/WNAC Savannah - WSAV and WJCL/WTGS In most cases, I think MG will hold the existing station and sell off the acquiring station. Maybe in Birmingham they might do the switcheroo though. Who could acquire the loose assets though? The FCC shouldn't worry too much about "status quo" shells IMO. They should focus on new shell situations. With this is happening. According to the cities that have conflicts. We will see a duopoly in Birmingham. Do Birmingham have enough stations to have legal duopoly. Triopolies in Green Bay, Mobile Providence Savannah. Most of these need shells. Does MG have shells? Link to comment Share on other sites More sharing options...
damien6786 9 Posted March 21, 2014 Share Posted March 21, 2014 Sorry about the confusion with my post. My post is this: With this is happening. According to the cities that have conflicts. We will see a duopoly in Birmingham. Do Birmingham have enough stations to have a legal duopoly. Triopolies in Green Bay, Mobile, Savannah. Most of these need shells. Does MG have shells Link to comment Share on other sites More sharing options...
Samantha 2876 Posted March 21, 2014 Share Posted March 21, 2014 Wow. Who said M&A was dead in local TV? Looks like there will be some great opportunities to buy into Birmingham. Could it be possible that someone buys WVTM (which is the worse station) and WABM? Link to comment Share on other sites More sharing options...
CircleSeven 1944 Posted March 21, 2014 Author Share Posted March 21, 2014 Sorry about the confusion with my post. My post is this: With this is happening. According to the cities that have conflicts. We will see a duopoly in Birmingham. Do Birmingham have enough stations to have a legal duopoly. Triopolies in Green Bay, Mobile, Savannah. Most of these need shells. Does MG have shells In the case of Birmingham, they have enough stations to form a duopoly. However, in the both WVTM & WIAT, they are both within the top 4 highest rated station by market share. LIN has three shells (Vaughan, Super Towers and Tamer), while MG only has one (Shield). If I was LIN or MG, I would be finding the sutable buyers for those five overlap markets instead using several shell games. Link to comment Share on other sites More sharing options...
GoldenShine9 1509 Posted March 21, 2014 Share Posted March 21, 2014 I agree with Gray for the Savannah and Green Bay stations as they fit well in their portfolios. Yes, a shell will be required no matter what in both markets, but the FCC should loosen up otherwise they would likely have to shut a station down as I see no suitors for a standalone WTGS or WCWF. In Birmingham, I could see Meredith coming in for WIAT, or Scripps for WVTM, but not the other way around (due to networks they primarily hold). In Providence, Meredith taking on the WPRI/WNAC duopoly makes most sense, it would also build them a cluster in southern New England as well. Again, WNAC is shell bait regardless. If WJAR goes, then Hearst makes most sense, since they have a large cluster in New England which could be added on to. In Mobile, Raycom is the obvious one for WALA/WFNA (a legal duopoly). I doubt Media General would want to let go of WKRG (is that a legacy station, or one from the Spartan purchase?) As for who could absorb them whole? *Gray could, but Birmingham is beyond their size range and Providence is a poor fit for them geographically. *Hearst could, although not sure what their interests are and they have no shells so likely wouldn't want the duopolies. Most likely they would want the existing Media General stations for the most part. *Scripps could, but they also have no shells and no CBS or Fox affiliates. *Gannett could, but are they up to buying more after the Belo purchase? *Meredith could, and might be the most likely straight-up buyer. Those with other conflicts: Raycom has 2 (Birmingham and Savannah), Sinclair has 2 (Birmingham and Mobile, both BIG ones), Nexstar has 1 (Green Bay; Birmingham likely out of their market size range) and Journal has 1 (Green Bay, but are they expanding?). Link to comment Share on other sites More sharing options...
hathawaynson2 38 Posted March 21, 2014 Share Posted March 21, 2014 Sorry about the confusion with my post. My post is this: With this is happening. According to the cities that have conflicts. We will see a duopoly in Birmingham. Do Birmingham have enough stations to have a legal duopoly. Triopolies in Green Bay, Mobile, Savannah. Most of these need shells. Does MG have shells Yes, on the MG side, LIN has six or seven shells in Youngstown, Providence and Topeka. Link to comment Share on other sites More sharing options...
Chief-O 28 Posted March 21, 2014 Share Posted March 21, 2014 Wow. As a GB market resident, I can't wait to see what happens. I do agree with the comment re. WLUK and the NFL/Packers----LIN/MG would probably want to hold on to them for that reason. WBAY is [and has been] #1 in news in the market, but they are an ABC affil.....I can see Gray or Hearst possibly grabbing them up [despite the station recently joining the MG portfolio]. Link to comment Share on other sites More sharing options...
DirtyHarry 718 Posted March 21, 2014 Share Posted March 21, 2014 This boosts MG's footprint substantially in the Western US and Hawaii. Suddenly KRON isn't completely isolated from the rest of the MG chain as before. WKBN-TV - and LMA partner WYTV - in Youngstown would tentatively become sister stations to Columbus's WCMH with this merger. Likewise with WDTN/WBDT, WISH/WNDY and the Fort Wayne Stations. WDTN and WCMH were formerly WLWD and WLWC! WTHR would have been the Crosley/Avco station in Indy, but WISH is close enough. In Birmingham, I could see Meredith coming in for WIAT, or Scripps for WVTM, but not the other way around (due to networks they primarily hold). In Providence, Meredith taking on the WPRI/WNAC duopoly makes most sense, it would also build them a cluster in southern New England as well. Again, WNAC is shell bait regardless. If WJAR goes, then Hearst makes most sense, since they have a large cluster in New England which could be added on to. In Mobile, Raycom is the obvious one for WALA/WFNA (a legal duopoly). I doubt Media General would want to let go of WKRG (is that a legacy station, or one from the Spartan purchase?) I doubt they let go of WVTM because they would probably have to report a huge tax loss, unless it has already been written down. Despite today's high prices for television stations, I would guess that the price MG paid for that station is still more than what they could get for it today. But then again, they used to own WIAT before they bought WVTM and WIAT has the better signal and better ratings. Buuuuuutttttt .... duopolies make money. So would they keep the Lin stations or the duopoly partner so they can double up on profits? I thought MG was going to be a goner in this round of consolidation. Surprise, surprise. Link to comment Share on other sites More sharing options...
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