NEW: Channel 10's Parent Company to Purchase Channel 12 and 64

GoLocalProv Business Team

NEW: Channel 10's Parent Company to Purchase Channel 12 and 64

The parent company of Channel 10 has agreed to purchase the parent company of Channel 12 and 64 in a $1.6 billion deal that has significant implications to the Providence TV market and will result in the loss of corporate jobs in RI.

Media General Inc's., (who owns WJAR-10) purchase of LIN Media (owners of WPRI-12 and Fox-64) will, in all likelihood, require the new combined corporate entity to divest one or two of the stations and sell them to new owners.

The purchase will consume the corporate office of LIN Media which is one of the few public companies located in Rhode Island.  Similar deal in TV in the past year has resulted in substantial job loss via consolidation. Media General is located in Richmond, Virginia and will be the corporate headquarters of the new entity.

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De facto, everything in local TV will be different in the next year if the deal is approved by federal regulators.

Accordingly, the purchase is considered to offer the combined entity better negotiating leverage with advertisers and cable providers.

LIN’s shareholders will receive stock/cash worth $27.82 a share -- 29% premium closing price of Thursday. Including debt of $968 million, the purchase would be valued at $2.6 billion, Media General and LIN said today in a statement.
 


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