Gray Television said it raised its offer for Meredith Corp.’s local media group after it was informed by Meredith of an unsolicited bid that arrived after their agreement to merge.
Gray’s new offer of $16.99 a share, or $2.85 billion in enterprise value, up from $14.50 a share or $2.7 billion, was accepted by Meredith’s board and an amending merger agreement was signed.
The rival bidder for the Meredith stations was not identified.
Gray said it remains committed to acquiring the Meredith local TV stations. Gray has identified $55 million in first-year cost synergies that can be achieved by combining the companies.
Gray is also in the process of buying Quincy Media for $925 million in cash. Gray is selling off TV stations in seven markets for $380 million to Byron Allen’s Allen Media Group to comply with government regulations.
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