TV stations' parent companies merge; they have affiliates in five Indiana cities

Nexstar Broadcasting, parent company of NBC affiliate WTWO-TV, has agreed to acquire Media General, parent company of CBS/Fox affiliate WTHI-TV, for about $2.12 billion, according to new releases posted by both companies on their websites. WTWO-TV manages WAWV-TV, which carries ABC programming.

The agreement includes a $60 million termination fee to Meredith Corp., which has an agreement to be purchased by Media General, the companies reported. In addition, Meredith will receive an opportunity to negotiate for the purchase of certain broadcast and digital assets currently owned by Media General, according to news releases from the companies.

Once completed, the new company — to be called Nexstar Media Group — will be one of the largest local TV station operators in the nation, with 171 stations reaching about 39 percent of U.S. television households. 

Nexstar, based in Irving, Texas, will pay $10.55 per share in cash and 0.1249 of a share of Nexstar common stock for each Media General share, according to the companies. A final price could be higher as the agreement also includes "potential" proceeds paid to Media General shareholders from the sale of Media General's spectrum in the upcoming auction by the Federal Communications Commission, Nexstar said.

Jeffrey McCall, professor of communication at DePauw University, told the Tribune-Star earlier this month that broadcasting companies are in an era where they are seeking to get bigger and consolidate with competitors, as prices rise for content and as networks face competition from Internet streaming technology.

Nexstar made an offer for Media General six months ago. Instead, Media General opted to acquire Des Moines-based Meredith Corp. That was not the end, as Nexstar made a higher offer for Media General in September and a third offer in November. Both of those were rejected by Media General.

After another bid, Media General said it would be willing to negotiate with Nexstar, leaving the door open for a future joining. Earlier this month, Nexstar and Media General issued press releases stating the two companies had completed negotiations for Nexstar to acquire Media General for about $2.3 billion in cash and stock. However, the agreement could not be finalized because the Media General-Meredith merger agreement had not been terminated.

Media General also owns Indiana stations in Fort Wayne, Indianapolis and Lafayette. Nexstar's Hoosier properties include Evansville and Fort Wayne.