Media General's shareholders approved the broadcaster's merger with Young Broadcasting at a meeting Nov. 7.
The shareholders voted to reclassify one-for-one each outstanding share of Media General's Class A and Class B Common Stock into a newly created class of Common Stock, eliminating Media General's dual-class stock structure. They also voted to issue approximately 60 million shares of this new class of Common Stock to the Young Broadcasting equity holders, increasing the total number of outstanding Media General shares to around 88 million.
The merger, announced in June, awaits FCC approval.
Media General will retain its name upon merging and will continue to be traded on the New York Stock Exchange under its symbol MEG. The company will remain headquartered in Richmond, VA.
"We're delighted to have shareholder approval for our business combination with Young Broadcasting, and we are very excited about the prospects for the combined company," said George L. Mahoney, president and CEO of Media General. "Once we receive FCC approval for our license transfers, we will close very quickly on the transaction."
Mahoney said the combined outfit will realize $44 million of synergies "very quickly," including $29 million of financing and $15 million of operating synergies.
"The stronger business profile that this merger creates, and our new financial flexibility, position Media General very well to participate actively in the broadcast industry's ongoing consolidation and to further enhance shareholder value," he concluded.
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