Meredith Corporation and Media General merging into $3 billion multimedia giant

U.S. magazine media giant Meredith Corporation (Better Homes & Gardens et al) has announced a $2.4 billion agreement to merge with television and digital media company Media General to create a new company to be known as Meredith Media General, according to a story on MediaPost.

The new consolidated company is projected to have annual revenues of $3 billion and will rank as one of the largest publishers and broadcasters in the U.S., as well as holding significant advertising agency and marketing services assets.

The company, in addition to being the 3rd largest local television station owner with a combined 88 stations will be a leading "multiplatform" publisher reaching more than 1 million unduplicated American readers and over 60 per cent of millennial women with titles such as Better Homes and Gardens, Allrecipes, Parents and Shape. Digital pubishing platforms reach more than 200 million and digital revenues are expected to exceed $500 million in the first full year of operations. 

Following the closing, Media General shareholders will own approximately 65 percent and Meredith shareholders will own approximately 35 percent of the fully-diluted shares of Meredith Media General.
The company will be managed by a board of eight, including four directors from Media Genereal and four from Meredith. Current Meredith chairman and CEO Stephen M. Lacy will be CEO.

The company will be headquartered at Media General's home base in Richmond, Virginia, although corporate and executive officers will remain in Meredith's base in Des Moines, Iowa. 

“We are excited about the opportunity to create a powerful new multiplatform and diversified media company with significant operations on the local and national levels," said Lacy in a shared release. "This merger will create a strong and efficient company positioned to realize the significant earnings and cash flow potential of local broadcasting; leverage the unparalleled reach and rich content-creation capabilities of Meredith’s national brands; and capture the rapidly developing growth potential of the digital media space. It also positions Meredith Media General to deliver enhanced shareholder value and participate in future industry consolidation.”