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.