Media General is acquiring Meredith Corp. in a cash and stock deal worth $2.4 billion, the two companies said Tuesday.

Meredith CEO Stephen Lacy will lead the new corporation, which will be called Meredith Media General, as CEO and president, while Joseph Ceryanec will be chief financial officer. Vincent Sadusky, Media General CEO, will depart after the merger closes, reports B&C. Meredith Media General will be incorporated in Virginia with corporate and executive offices in Des Moines, where Meredith is located, and Richmond, where Media General is headquartered.

Industry watchers had been eyeing a potential combination of Meredith and Media General since each group offers the other synergies. The new group will own 88 stations in 54 markets, covering 30% of the U.S. or 34 million households.

Stations in six markets will be swapped or otherwise divested in order to address regulatory considerations. These markets are Portland, Ore; Nashville, Tenn.; Hartford-New Haven, Conn.; Greenville-Spartanburg, S.C.-Asheville, N.C.; Mobile, Ala.-Pensacola, Fla.; and Springfield, Mass.

“This merger creates greater opportunities for profitable growth than either company could achieve on its own,” said Media General Chairman J. Stewart Bryan III in a statement.

“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, also in a statement. “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.”

Leaders from both companies touted their ability to reach women during a conference call on Tuesday. Meredith publishes such titles as Better Homes and Gardens, Shape and AllRecipe.com.

The new company also expects to profit from the coming presidential campaign, with Lacy noting that Democratic presidential contender Hillary Clinton has already started advertising in Iowa.

The transaction, which already has been approved by both boards of directors, is expected to close by June 30, 2016, after running the appropriate regulatory channels.

Read more: B&C, TVNewscheck

Brief Take: Consolidation has rolled through the TV station industry, leaving very little left to acquire or roll up.

Image courtesy of USA News & World Report, via the Associated Press

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