The change from $27.82 a share to $25.97 follows the loss of CBS affiliation for LIN’s WISH Indianapolis. Given that LIN has 55.6 million shares outstanding, the per-price reduction shaves $103 million off the total value of the deal.
LIN Media’s loss of its CBS affiliation in Indianapolis is taking its toll.
Media General announced this morning that because of that loss, which will leave LIN’s WISH an independent is the 26th largest TV market, it is restructuring its deal to acquire LIN Media.
Instead of paying $27.82 in cash and stock for each share of LIN as it said it would it March, it will pay just $25.97 per share. With 55.6 million shares of LIN outstanding, that reduces total price tag on deal by $103 million.
In prepared statements, executives reaffirmed their commitment to the deal. “Over the past five months we have become even more convinced that our combination with LIN Media is a major strategic, financial and operational opportunity for our shareholders,” said Media General Chairman J. Stewart Bryan. “We are pleased to report that we are still on track to close the transaction in early 2015.”
CBS announced on Aug. 11 that it was yanking its affiliation from WISH and switching it to Tribune’s WTTW over LIN’s unwillingness to meet its reverse comp demands.
The switch is effective Jan. 1, 2015. WTTV is currently a CW affiliate. Come Jan. 1, the CW programming will move to a WTTV subchannel. Tribune also owns the market’s Fox affiliate, WXIN.
Tribune said it will begin producing local news on WTTV.