After five months of back and forth, Nexstar Broadcasting Group on Wednesday said it would acquire Media General for $4.6 billion.

The new Nexstar Media Group will own 171 full-power television stations in 100 markets, covering approximately 39% of U.S. television households and hitting the FCC’s national television ownership cap.

“The acquisition of Media General’s broadcasting and digital media assets represent a transformational growth opportunity for Nexstar and is strategically and financially compelling,” said Perry Sook, chairman, president and CEO of Nexstar, in a statement. “The transaction increases Nexstar’s broadcast portfolio by approximately two thirds with very limited overlap with our existing properties, more than doubles our audience reach, provides entrée to 15 new top-50 DMAs and offers synergies related to the increased scale of the combined digital media operations.”

Last September, Meredith announced it was buying Media General, but it wasn’t long before Nexstar came in with a rival offer.

According to Nexstar CEO Perry Sook, it was Media General’s equity investors who asked him to get involved because they didn’t think the Meredith offer was a good enough deal. Sook followed through, and the result is today’s announcement. Meredith will receive a $60 million termination fee.

Meanwhile, Meredith plans to continue aggressively pursuing station acquisitions, said CEO Steve Lacy during an earnings call today. As part of its break-up deal, Meredith has first dibs on stations that Nexstar and Media General have to divest in order to stay under the cap.

Brief Take: In order to compete in this consolidating media market, TV station groups are having to merge to create scale. Nexstar’s acquisition of Media General shoots it into the top ranks of broadcasters.

[Image courtesy of B&C]

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