Media General is buying fellow TV broadcaster LIN Media in a deal worth about $1.6 billion in cash and stock.
The combined company would own and operate or service a combined 74 stations across 46 markets.
The companies say the deal is worth about $27.82 per share and represents an 87% premium over LIN's Thursday closing stock price. The companies say LIN shareholders will own about 36% of the combined company.
The deal also includes about $968 million in debt.
LIN Media LLC shares are up 31% in premarket trading, while Media General shares are up 13%.
Under the agreement, LIN shareholders can receive either $27.82 in cash or 1.5762 shares of stock in the combined company for each of their LIN shares.
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