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Media General to buy WISH-TV parent in deal worth $1.6B

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Media General is buying fellow TV broadcaster LIN Media in a deal worth about $1.6 billion in cash and stock, the companies announced Friday.

LIN Media is the parent of Indianapolis station WISH-TV Channel 8.

The combined company would own and operate or service 74 stations across 46 markets, reaching about 26.5 million households.

Media General said that it has offered about $27.82 for each LIN Media share, representing an 29-percent premium over LIN's Thursday closing stock price. LIN shareholders will own about 36 percent of the combined company.

Vincent Sadusky, LIN's president and CEO, will become president and CEO of combined company. Media General Chairman J. Stewart Bryan III will continue to serve in that position. The company will take the name Media General and remain based in Richmond, Va.

The combined company's board will consist of 11 directors, seven of which will be picked by Media General and four of which will be selected by LIN. Sadusky will get one of LIN's four spots.

Under the agreement, which has been approved by the boards of both companies, 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. About $763 million is available for the cash portion of the deal.

The deal also includes about $968 million in assumed debt.

Shares of Austin, Texas-based LIN Media LLC jumped $6.37, or 30 percent, to $27.86 in morning trading on the news, while Media General Inc. shares rose $1.73, or 10 percent, to $19.07.

RBC Capital Markets has agreed to provide Media General with $1.6 billion in financing for the deal.

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  1. If I were a developer I would be looking at the Fountain Square and Fletcher Place neighborhoods instead of Broad Ripple. I would avoid the dysfunctional BRVA with all of their headaches. It's like deciding between a Blackberry or an iPhone 5s smartphone. BR is greatly in need of updates. It has become stale and outdated. Whereas Fountain Square, Fletcher Place and Mass Ave have become the "new" Broad Ripples. Every time I see people on the strip in BR on the weekend I want to ask them, "How is it you are not familiar with Fountain Square or Mass Ave? You have choices and you choose BR?" Long vacant storefronts like the old Scholar's Inn Bake House and ZA, both on prominent corners, hurt the village's image. Many business on the strip could use updated facades. Cigarette butt covered sidewalks and graffiti covered walls don't help either. The whole strip just looks like it needs to be power washed. I know there is more to the BRV than the 700-1100 blocks of Broad Ripple Ave, but that is what people see when they think of BR. It will always be a nice place live, but is quickly becoming a not-so-nice place to visit.

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