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.
Media General Drops Per-Share Price For LIN
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.
BRAND CONNECTIONS
Tribune said it will begin producing local news on WTTV.
Comments (6)
Don Thompson says:
August 20, 2014 at 5:52 pm
I hope LIN Media (LIN) shareholders now understand that TV broadcasting’s biggest problem isn’t the free-market, consumer-friendly Rockefeller-Thune Local Choice proposal, which is a Fort Knox windfall for local TV stations ………….. No, the real and growing problem is Air Marshal Moonves at CBS: “CBS Sending Big Message To Affiliates” ………….. .By John Sewarda/Benzinga ………. CBS is sending a message to its affiliates: Pay up or get out. CBS Chief Executive Leslie Moonves signaled that the company was seeking higher fees in a conference call with analysts last week. “We decide what we think is fair,” said Moonves……………….. Please follow me on Twitter @TedatACA
Wagner Pereira says:
August 20, 2014 at 9:17 pm
Incorrect. The REAL problem is ACA and other MVPDs not paying OTA TV 35% of their Program Expenses as that is what Americans view. BTW, is ACA ready to commit dropping bills to customers 10% to pay for OTA going A LA CARTE? Didn’t think so………………………. Please follow me on Twitter @Not TedatACA
Manuel Morales says:
August 20, 2014 at 6:01 pm
Ted- is the ACA for complete un-bundling and complete transparency with regards to channel pricing?
Don Thompson says:
August 20, 2014 at 7:02 pm
Hey, Media General (MEG), do $LIN shareholders get another “window-shop” opportunity to seek a better offer than the 6% haircut you handed out today? Didn’t think so ………………………. Please follow me on Twitter @TedatACA
Wagner Pereira says:
August 20, 2014 at 9:14 pm
Why does the ACA want anyone to OVERPAY for something that is not worth what it once was? Is that what the ACA is all about? ………………………. Please follow me on Twitter @Not TedatACA