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Media General

Media General, Inc. was an American media conglomerate headquartered in Richmond, Virginia, that owned and operated television stations, newspapers, and digital media properties, primarily in the southeastern United States, from its formation in 1940 until its acquisition by Nexstar Broadcasting Group in 2017.^[1]^[2]^[3] Tracing its origins to 19th-century Richmond newspapers, including the Dispatch founded in the 1850s, the company emerged in its modern form through the 1940 consolidation of the Richmond Times-Dispatch and News Leader, followed by expansion into television broadcasting starting in the 1950s and becoming publicly traded in 1969.^[4]^[5]^[6] In response to declining print media viability, Media General sold most of its 63 newspapers to Berkshire Hathaway for $142 million in 2012, retaining only the Tampa Tribune group temporarily before refocusing exclusively on broadcasting.^[7]^[8] The firm then accelerated growth via mergers with Young Broadcasting in 2013, adding 13 stations, and LIN Media in 2014, which created the second-largest local TV owner at the time with over 60 stations reaching 40% of U.S. households.^[9]^[10] This culminated in Nexstar's $4.6 billion acquisition in 2017, approved after required divestitures to address antitrust concerns, forming Nexstar Media Group as the nation's second-largest television broadcaster by revenue and reach.^[11]^[12]

History

Founding and Initial Operations (1923–1950s)

The Bryan family's media operations, which formed the foundation for what would become Media General, centered on Richmond, Virginia's leading newspapers during the 1920s. By this period, the family controlled the morning Richmond Times-Dispatch, established through mergers of earlier publications like the Richmond Daily Times (acquired by Joseph Bryan in 1887) and the Richmond Dispatch, alongside the afternoon Richmond News Leader, formed in 1903 from the merger of the Richmond Leader (acquired in 1896) with a rival paper.^[3]^[13] Under John Stewart Bryan, Joseph's son who assumed leadership after 1908, these publications maintained separate editorial stances but shared ownership, achieving dominant market penetration in the capital region with combined daily circulation exceeding local competitors.^[3] Expansion beyond Virginia began in 1927 when John Stewart Bryan, in partnership with Samuel Emory Thomason, acquired the Tampa Tribune, a daily newspaper in Florida that broadened the group's geographic footprint and diversified revenue from advertising and subscriptions in growing southern markets.^[13] Operations emphasized print journalism, with the Richmond papers focusing on local, state, and national coverage, supported by the Bryan family's conservative editorial influence rooted in Joseph Bryan's original acquisitions.^[13] By the late 1930s, initial forays into broadcasting commenced with the launch of AM radio station WRNL in Richmond in 1937, marking the group's entry into electronic media amid rising radio listenership.^[3] In 1940, the operations formalized under Richmond Newspapers, Inc., created on November 20 through the corporate consolidation of the Times-Dispatch and News Leader, which retained distinct publication schedules while streamlining management and facilities.^[13]^[3] This entity held the widest newspaper circulation in Virginia at the time, bolstered by the integration of WRNL's radio operations.^[13] Further diversification occurred in 1949 with the establishment of an FM radio station in Richmond, complementing AM broadcasts and anticipating postwar growth in audio media.^[3] Entering the 1950s, Richmond Newspapers maintained strong operational stability, with the Times-Dispatch and News Leader reaching approximately 90% of Richmond households and achieving a combined circulation of 275,000, ranking 34th among U.S. newspapers.^[3] The portfolio's focus remained on print dominance in core markets, supplemented by nascent radio assets that served local advertising and news dissemination, setting the stage for broader media integration without significant debt or external challenges during this era.^[3]

Expansion into Broadcasting and Key Acquisitions (1960s–1990s)

In 1966, Richmond Newspapers, Inc. acquired a 52.2% controlling interest in the Tribune Publishing Company for $17.5 million in cash and stock, gaining entry into broadcasting through ownership of WFLA-TV (an NBC affiliate), WFLA-AM, and WFLA-FM in Tampa, Florida, alongside the Tampa Tribune and Tampa Times newspapers.^[3] This marked Media General's initial expansion into television, building on earlier radio interests but prioritizing TV as a growth area in the Southeast under president D. Tennant Bryan, who emphasized regional media synergies.^[14] By 1969, the company restructured as Media General, Inc., a holding entity to consolidate its diversifying assets, and purchased the remaining 29% of Tribune Publishing for $9 million, achieving full control of its Tampa broadcast properties.^[3] This name change reflected the shift toward a multimedia portfolio, with broadcasting revenues rising amid television's post-1960s audience growth, though print remained dominant.^[13] In 1982, Media General divested WFLA-AM and WFLA-FM for $14 million to streamline operations toward television, retaining WFLA-TV as a core asset.^[3] The 1980s saw further targeted acquisitions to bolster TV holdings in Sun Belt markets. In July 1982, Media General agreed to buy WCBD-TV (NBC affiliate) in Charleston, South Carolina, from State Telecasting Company for $8 million, with FCC approval granted on January 24, 1983, expanding its footprint into the Carolinas.^[15] Concurrently in 1983, it acquired WCWJ (channel 17, independent station) in Jacksonville, Florida, enhancing local market presence and programming diversity in a competitive region.^[3] These moves, under CEO Alan S. Donnahoe, aligned with deregulation trends like the FCC's 1984 ownership rule relaxations, enabling clusters in top-50 markets and yielding 22.1% Southeast TV household reach by decade's end.^[16] Through the 1990s, Media General maintained this selective strategy, focusing on operational efficiencies rather than aggressive buys, as broadcasting profits offset newspaper declines.^[3]

Newspaper and Media Challenges in the Early 2000s

In the early 2000s, Media General's publishing division, comprising 20 daily newspapers including flagship titles like the Richmond Times-Dispatch and Tampa Tribune, confronted nascent pressures from economic cycles and technological shifts that foreshadowed broader industry contraction. U.S. newspaper advertising revenues, a primary revenue driver, declined amid the 2001 recession following the dot-com bust and the September 11 attacks, dropping from $48.7 billion in 2000 to $47.4 billion in 2001 and $45.8 billion in 2002, with classified ads—traditionally 25-30% of print revenue—particularly vulnerable as online platforms like Craigslist siphoned local listings. Media General's publishing operations mirrored this, though with temporary offsets from retail advertising stability. Despite these headwinds, the division posted a 5% revenue increase in 2003 to approximately $540 million (including online affiliates), buoyed by modest gains in local display ads and early digital supplementation, while combined daily paid circulation held at around 840,000 and Sunday at 984,000.^[17] ^[18] However, underlying metrics revealed strain: classified revenues softened due to economic softness and nascent internet migration, prompting cost controls and investments in convergence strategies, such as integrating newspaper content with affiliated TV stations and websites to capture digital traffic. These efforts yielded online revenue growth but failed to fully arrest print erosion, as readership habits shifted toward free web alternatives, eroding the monopoly pricing power of local dailies.^[18] By 2004-2005, accelerating challenges crystallized, with publishing contributing to overall earnings pressure—a 38% drop in third-quarter net income to $9.8 million in 2005, partly from stagnant ad demand amid rising newsprint costs and competition.^[19] Media General responded by prioritizing broadcast assets, which outperformed print, while experimenting with paid online models; yet, systemic biases in legacy operations—overreliance on bundled print ads ill-suited to fragmented digital markets—highlighted causal vulnerabilities rooted in delayed adaptation to unbundled consumer preferences. This period marked the pivot from viewing newspapers as stable cash cows to recognizing them as drag on diversified media conglomerates.

Divestments and Restructuring (Late 2000s)

In response to weakening advertising revenues across its newspaper and broadcasting segments, compounded by the 2008 financial crisis, Media General pursued divestments of smaller-market television stations to generate cash and refocus on higher-performing assets. In early 2008, the company completed the sale of WMBB-TV, an ABC affiliate in Panama City, Florida, and KALB-TV (including low-power sister station NALB), a duopoly serving Alexandria, Louisiana, to Hoak Media Corporation for an undisclosed amount; these transactions followed a 2007 announcement exploring sales of underperforming outlets.^[20] Similarly, WNEG-TV, a local ABC/NBC affiliate in Toccoa, Georgia, was sold to the University of Georgia Research Foundation, which repurposed it for public broadcasting under the WUGA-TV callsign.^[21] These moves netted proceeds that contributed to debt reduction while allowing Media General to exit markets with limited growth potential. Parallel to these asset sales, Media General undertook financial restructuring to address mounting liquidity pressures from $898 million in outstanding debt and covenant compliance risks under its existing credit facility. On December 10, 2008, the company secured amendments from its lending syndicate, easing terms and enabling debt paydown to approximately $730 million by year-end through operational cash flow and divestiture gains.^[22] Projections indicated further deleveraging to $710 million by the end of 2009, excluding potential additional sales, as broadcast cash flow stabilized relative to steeper newspaper declines but remained vulnerable to cyclical ad spending. This approach preserved operational continuity without immediate equity dilution or bankruptcy proceedings, though it reflected broader industry strains from digital disruption and economic contraction.

Mergers with Young Broadcasting and LIN Media (2010s)

In June 2013, Media General announced a merger agreement with privately held Young Broadcasting, combining their broadcast operations to form a larger television station group.^[23] The deal, entered on June 5, 2013, integrated Young's 10 stations in nine markets with Media General's existing portfolio, resulting in 31 stations across 28 markets upon completion.^[24] Both companies' boards unanimously approved the transaction, which was structured to enhance scale in local broadcasting amid declining newspaper revenues.^[23] The merger faced standard regulatory scrutiny, receiving shareholder approval in November 2013 and FCC consent on November 8, 2013, after reviews under ownership limits and public interest standards.^[25]^[26] It closed on November 12, 2013, marking Media General's pivot toward television dominance by divesting non-core newspaper assets to fund broadcast expansion.^[24]^[9] This consolidation reflected industry trends toward aggregating local affiliates of major networks like NBC, ABC, CBS, and FOX to negotiate better affiliation fees and retransmission consents.^[9] Building on the Young integration, Media General pursued further growth by announcing the acquisition of LIN Media on March 21, 2014, in a $1.6 billion cash-and-stock deal that elevated the combined entity to the second-largest U.S. local TV owner.^[27]^[10] LIN shareholders could elect $27.82 per share in cash or 1.5762 shares of the new holding company, with the enterprise value reaching $2.6 billion after accounting for LIN's $968 million pro forma net debt as of December 31, 2013.^[28]^[29] The transaction would yield 74 stations in 46 markets, emphasizing duopoly opportunities and digital multicast expansion.^[10] Regulatory hurdles included FCC review for compliance with local ownership caps and DOJ antitrust scrutiny, leading to required divestitures of overlapping stations to entities like Sinclair Broadcast Group and Hearst Corporation.^[30]^[31] The FCC approved the merger and divestitures on December 12, 2014, following a proposed final judgment filed in November 2014 to address competitive concerns in select markets.^[32]^[33] Closure occurred shortly thereafter, solidifying Media General's focus on high-margin TV operations amid cord-cutting pressures and affiliation revenue growth.^[30] These mergers, sourced from SEC filings and official regulatory documents, underscore Media General's strategic realignment without unsubstantiated claims of market dominance motives.^[34]

Aborted Meredith Merger and Acquisition by Nexstar (2015–2017)

In September 2015, Media General announced an agreement to acquire Meredith Corporation in a cash-and-stock transaction valued at approximately $2.4 billion, with Meredith shareholders receiving $51.53 per share, representing a 12% premium to Meredith's closing price prior to the announcement.^[35]^[36] The proposed merger aimed to combine Media General's 71 television stations with Meredith's 17 stations and its magazine portfolio, including titles like Better Homes and Gardens, creating the third-largest U.S. broadcast station group by audience reach, covering about 34% of television households.^[37]^[38] On September 28, 2015, Nexstar Broadcasting Group submitted an unsolicited proposal to acquire Media General for $10.50 per share in cash and stock, valuing the deal at $4.1 billion including assumed debt.^[39] Media General's board rejected this initial bid on November 16, 2015, deeming it undervalued compared to the Meredith transaction and the company's strategic prospects, though it expressed willingness to engage in further discussions.^[40] Following negotiations, Media General terminated the Meredith merger agreement on January 7, 2016, paying a $70.5 million termination fee to Meredith, and entered into a definitive merger agreement with Nexstar on January 17, 2016, for an increased $14.10 per share in cash and stock, elevating the total enterprise value to $4.6 billion.^[41] The deal required regulatory approvals, including U.S. Department of Justice-mandated divestitures of seven Media General stations in six markets to address antitrust concerns over market concentration.^[12] The Federal Communications Commission granted approval in December 2016 after reviews of ownership limits and local market impacts.^[42] Nexstar completed the acquisition of Media General on January 17, 2017, forming Nexstar Media Group as the second-largest U.S. television broadcaster by station count, with over 170 stations reaching 39% of households; Media General's stations were integrated into Nexstar's operations, while its remaining newspaper assets, such as the Richmond Times-Dispatch, were spun off or sold separately prior to closing.^[11]^[43] This transaction marked a shift from Media General's brief diversification push via Meredith toward Nexstar's focus on scaling broadcast television amid declining print viability.

Corporate Strategy and Operations

Business Model Evolution

Media General's business model originated in newspaper publishing, centered on advertising revenue from local and national display ads, classifieds, and circulation subscriptions, which accounted for the majority of its income through the mid-20th century.^[44] The company entered broadcasting in the 1950s, acquiring its first television station, WFLA-TV in Tampa, Florida, in 1955, to capitalize on the emerging medium's potential for affiliate network fees, commercial airtime sales, and syndicated programming.^[13] This diversification reduced reliance on print amid rising TV viewership, with broadcast revenues growing through local advertising monopolies in smaller markets and political ads during election cycles. By the 2000s, structural declines in newspaper advertising—driven by online classified shifts to platforms like Craigslist and broader digital disruption—prompted a strategic reorientation toward broadcasting, which offered higher margins from retransmission consent fees negotiated with cable and satellite providers.^[45] In February 2012, facing $700 million in debt and eroding print profitability, Media General announced exploration of newspaper sales to prioritize TV operations.^[46] The company completed the divestiture in May 2012, selling 63 newspapers (excluding the Tampa group) to Berkshire Hathaway for $142 million, followed by the Tampa Tribune in October for $1.3 million, yielding $359.7 million in 2012 broadcast revenues—a 28% increase from 2011—primarily from $187 million in local ads, $95 million national, $64 million political, and $38 million retransmission fees (up 76%).^[47]^[48] This pivot transformed Media General into a "pure-play" broadcast and digital entity, with corporate expenses cut to $20 million annually and debt refinanced via a $363 million Berkshire loan maturing in 2020.^[7] Post-2012, the model emphasized scale through acquisitions: the 2013 merger with Young Broadcasting added eight stations, and the 2014 LIN Media merger expanded to 62 markets, enhancing bargaining power for affiliate and retransmission revenues amid cord-cutting threats.^[49] Digital integration supplemented TV with station websites and online ads ($10 million in 2012, up 18%), though broadcasting remained dominant at 40.5% cash flow margins, buoyed by election-year political spending and non-duopolous market efficiencies.^[48] This evolution reflected causal adaptation to print's obsolescence versus TV's regulatory-protected localism and revenue stability, though it incurred a $193.4 million net loss in 2012 including divestiture charges.^[48]

Management Innovations and Balanced Scorecard

In the early 2000s, Media General adopted the Balanced Scorecard (BSC) framework as a core management innovation to address operational silos across its publishing, broadcasting, and interactive media divisions amid intensifying industry competition and digital disruption.^[50]^[51] The initiative, spearheaded by senior leadership, aimed to translate the company's strategic vision—focused on revenue growth, cost efficiency, and cross-divisional collaboration—into measurable objectives and key performance indicators (KPIs).^[52] Unlike traditional financial metrics alone, the BSC incorporated four perspectives: financial (e.g., revenue per employee and EBITDA margins), customer (e.g., audience share and advertiser satisfaction), internal processes (e.g., content production cycle times and digital integration efficiency), and learning and growth (e.g., employee training hours and innovation project completion rates).^[50] This multi-dimensional approach facilitated alignment between divisional goals and corporate strategy, enabling executives to monitor progress through cascaded scorecards at business unit and individual levels.^[51] Implementation involved workshops with division heads to define strategy maps linking cause-and-effect relationships, such as how investments in employee skills drove process improvements leading to higher customer retention and financial returns.^[52] By 2003, the BSC had been rolled out company-wide, with quarterly reviews tying performance to incentive compensation, which reportedly enhanced accountability and reduced redundancies in areas like shared advertising sales.^[50] Media General's adaptation emphasized media-specific metrics, such as digital audience metrics and content syndication yields, reflecting causal links between operational innovations and market performance rather than isolated financial snapshots.^[53] Challenges included initial resistance from siloed managers and the need for robust data systems, but these were mitigated through pilot testing in select markets before full deployment.^[51] The BSC's sustained application contributed to Media General's recognition in the Balanced Scorecard Hall of Fame, highlighting its role in fostering long-term strategic execution over a decade.^[53] Empirical outcomes included improved cross-divisional synergies, such as integrated newsroom operations between print and broadcast, which supported revenue diversification efforts prior to major mergers.^[50] This innovation underscored a shift from reactive cost-cutting to proactive, data-driven management, though its effectiveness was later tested by broader sector declines in print advertising.^[52] Overall, the framework provided a verifiable mechanism for causal analysis, prioritizing empirical KPIs over anecdotal assessments in a volatile media landscape.^[51]

Financial Performance and Adaptations to Digital Disruption

Media General's publishing operations encountered profound financial headwinds during the 2000s, as the proliferation of online classified services and free digital news sources precipitated a collapse in print advertising revenues, which had comprised up to 42% of company profits as late as 1982 but dwindled amid industry-wide erosion from a 2000 peak of roughly $60 billion to half that by decade's end. The firm's 2009 second-quarter net income of $20.6 million followed a $532 million prior-year loss, largely attributable to newspaper impairments and ad shortfalls exacerbated by the recession and internet substitution effects.^[3]^[54] In adaptation, Media General executed a decisive divestment of its core newspaper assets—63 dailies and weeklies, excluding the Tampa Tribune—to Berkshire Hathaway for $142 million cash in June 2012, yielding funds to retire high-interest debt and reorient toward broadcasting's superior resilience against digital commoditization of content.^[55] This transaction, announced May 2012, catalyzed a 58% pre-market stock surge and enabled refinancing of a $363 million facility, with post-sale 2012 revenues climbing 28% to $360 million, propelled by broadcast gains in retransmission consent payments and connective tissue to digital extensions.^[56]^[48] The broadcasting pivot yielded compounding returns through consolidation: the November 2013 merger with Young Broadcasting integrated 10 stations across nine markets, while the March 2014 LIN Media acquisition scaled operations to 57 stations in 38 markets, diversifying revenue via political cycles and affiliation leverage with networks like NBC and CBS. By 2015, consolidated revenues reached $1.305 billion, with fourth-quarter net revenues at $366 million (up 69% year-over-year) and operating cash flow margins bolstered by these synergies.^[2]^[57] Confronting digital's encroachment on linear TV viewership, Media General augmented adaptations with investments in multicasting, mobile apps, and data-driven local digital ads; net digital revenues accordingly ballooned 223% to $44 million in 2015 from $14 million prior, representing nascent countermeasures to streaming fragmentation though insufficient to avert the firm's 2017 Nexstar acquisition amid escalating content delivery costs.^[57]

Owned Properties

Newspapers

Media General's newspaper operations originated in 1887 with Joseph Bryan's acquisition of The Richmond Daily Times, which evolved into the flagship Richmond Times-Dispatch following mergers, including with The Richmond News Leader in 1940.^[58] The company expanded its print holdings primarily in the Southeastern United States, building a portfolio centered on Virginia and adjacent states through organic growth and acquisitions. By the late 20th century, key dailies included the Richmond Times-Dispatch, Roanoke Times, and Winston-Salem Journal, alongside numerous weeklies serving local markets.^[59] Throughout the 1990s and early 2000s, Media General pursued strategic adjustments to its newspaper assets, such as divesting non-core properties like its Kentucky titles in June 1998 for $254.8 million to streamline operations amid increasing competition from broadcast and emerging digital media.^[58] The division generated significant revenue historically but faced mounting pressures from declining print circulation and advertising revenues, exacerbated by the shift to online news consumption in the mid-2000s. These challenges prompted a reevaluation of print's viability relative to the company's growing television interests. In May 2012, confronting substantial debt estimated at over $1 billion, Media General divested its entire newspaper division—comprising 63 publications, including 23 dailies—to Berkshire Hathaway's BH Media Group subsidiary for $142 million in cash.^[59]^[60] This transaction excluded the Tampa Tribune, which Media General had acquired in 1982 and later sold separately amid similar market declines, allowing the company to eliminate print operations and redirect resources toward broadcasting.^[5] The sale marked the end of Media General's century-long involvement in newspapers, reflecting broader industry trends where legacy print chains ceded ground to digital and TV platforms for higher margins and audience retention.

Television Stations

Media General entered the television broadcasting industry in 1955 with the acquisition and launch of WFLA-TV, an NBC affiliate serving the Tampa–St. Petersburg market in Florida.^[2] This station became a cornerstone of the company's broadcast operations, emphasizing local news, programming, and advertising sales typical of network affiliates in mid-sized markets. Subsequent acquisitions in the 1960s and 1970s added stations such as WSLS-TV (NBC) in Roanoke, Virginia, and WJAR-TV (NBC) in Providence, Rhode Island, establishing a portfolio concentrated in the Southeast and Northeast regions.^[6] By 2012, Media General owned or operated 18 network-affiliated television stations, primarily CBS, NBC, and ABC outlets, alongside three TDAs (translators or low-power stations) and related digital properties.^[2] The company's strategy prioritized duopolies—owning two stations in the same market—for operational efficiencies and revenue diversification through complementary network affiliations and local content. Revenue derived mainly from advertising (about 80% of broadcast income), retransmission consent fees from cable and satellite providers, and emerging digital multicast channels.^[2] Significant expansion occurred in the 2010s via mergers. In November 2013, Media General merged with Young Broadcasting, adding 10 stations including WKRN-TV (ABC) in Nashville, Tennessee, and KCBD (NBC) in Lubbock, Texas, enhancing coverage in the Midwest and South.^[9] This was followed in March 2014 by the $1.6 billion acquisition of LIN Media, which contributed 43 stations across 23 markets, such as WNCN (CBS) in Raleigh, North Carolina, and WCMH-TV (NBC) in Columbus, Ohio.^[27] The combined entity operated 71 full-power stations in 48 markets by late 2015, reaching roughly 30% of U.S. television households, with affiliations comprising 12 CBS, 9 NBC, 7 ABC, and one each of FOX, CW, and MyNetworkTV stations.^[57] ^[61] Notable holdings included duopolies like WVTM-TV (ABC) and WIAT (CBS) in Birmingham, Alabama; WKRG-TV (CBS) and WFNA (CW) in Mobile, Alabama; and WFLA-TV (NBC) and WTTA (independent) in Tampa.^[62] Stations emphasized local news production, with many ranking as market leaders in key demographics, though competition from cable, online video, and national broadcasters pressured traditional ad revenues.^[6] Digital adaptations included websites, mobile apps, and over-the-air subchannels for secondary networks, reflecting efforts to counter cord-cutting trends evident by 2015.^[6] Prior to the 2017 Nexstar acquisition, Media General's TV assets generated about $1.2 billion in annual revenue, underscoring their role as the company's primary growth driver post-newspaper divestitures.^[11]

Other Media and Digital Assets

Media General maintained a dedicated digital media division, Media General Digital, which integrated online extensions of its broadcast stations with specialized advertising and content platforms. This division encompassed websites and mobile applications for its television properties, providing localized news, weather, and video content to extend linear broadcasting reach. By 2013, six stations featured dedicated mobile news apps, while the broader portfolio included optimized websites supporting digital ad sales and audience interaction.^[63] Acquired through the 2014 merger with LIN Media, key subsidiaries bolstered programmatic and creative digital capabilities. Federated Media operated as a publisher network emphasizing native advertising and content engagement strategies. HYFN functioned as a creative agency developing interactive web, mobile, and social applications for brands. Dedicated Media specialized in performance-driven display advertising, optimizing campaigns across digital channels. These entities collectively formed one of the largest digital media operations in local broadcasting by 2015, generating revenue through targeted ads, data analytics, and cross-platform solutions.^[57]^[64] Earlier investments included the 2005 acquisition of Blockdot, an advergaming firm producing branded casual games and interactive entertainment to drive online user engagement and advertiser visibility. Blockdot contributed to website features like online games and coupons, with revenues growing to $8 million by 2007 while achieving profitability. No substantial holdings in radio, outdoor advertising, or unrelated print media were reported beyond core synergies with television operations.^[65]^[66]

Legacy and Industry Impact

Achievements in Media Consolidation and Efficiency

Media General advanced media consolidation by strategically divesting its newspaper operations in 2012, selling 63 publications to Berkshire Hathaway's BH Media Group for $142 million, which enabled a sharper focus on higher-margin television broadcasting. This pivot positioned the company to capitalize on the growing TV sector amid declining print viability, streamlining its portfolio toward broadcast assets with stronger revenue potential from advertising and retransmission fees.^[67] A pivotal achievement came in November 2013 with the merger with Young Broadcasting, which integrated 12 additional stations into Media General's holdings, nearly doubling its TV portfolio to 30 stations across 27 markets and reaching 14% of U.S. television households. The transaction generated $25–30 million in annual operating and financing synergies, including debt refinancing at lower interest rates, making it accretive to free cash flow in the first full year post-merger and enhancing overall financial robustness.^[68]^[5] Further consolidation occurred in March 2014 through a $1.6 billion merger with LIN Media, forming a second-largest pure-play TV station group with 74 stations in 46 markets, covering 23% of U.S. TV households. This scale facilitated operational efficiencies via expanded shared services agreements for news production, sales, and administration, reducing redundancies and costs while improving programming consistency and advertiser leverage. The combined entity benefited from enhanced negotiating power with networks and affiliates, contributing to revenue growth, as evidenced by a 13% year-over-year increase to $363 million in Q2 2015.^[28]^[29]^[69]

Criticisms of Market Concentration and Localism Loss

Critics of Media General's 2013 merger with Young Broadcasting, valued at approximately $700 million and expanding its portfolio to 30 television stations serving 14% of U.S. households, contended that the consolidation diminished local news diversity and quality by enabling duopolies and shared services agreements in select markets.^[70] Analyst Danilo Yanich's research indicated that such ownership concentrations generally reduce the volume and originality of local content, as stations prioritize efficiencies over community-specific reporting.^[71] The 2017 acquisition of Media General by Nexstar Media Group for $4.6 billion intensified concerns over national market concentration, propelling Nexstar's reach to roughly 63% of U.S. television households through exploitation of the FCC's UHF discount policy, which effectively bypassed statutory ownership caps.^[72] Public interest advocates, including media reform groups, argued that this scale conferred monopoly-like leverage, inflating retransmission consent fees paid by cable providers and stifling competition in local advertising, where fewer owners could collude on rates.^[72] The FCC approved the transaction in January 2017, mandating divestitures of certain stations to adhere to local market limits, but critics maintained these remedies failed to mitigate overarching competitive harms.^[73] On localism, detractors emphasized how post-acquisition practices under Nexstar—such as regional news sharing and centralized production—eroded station-level autonomy, leading to layoffs and a pivot to formulaic coverage of crime, weather, and traffic over investigative or issue-driven journalism.^[72] At acquired outlets like WTNH in Connecticut, understaffing hampered original reporting despite producing up to 11 hours of daily news, exemplifying broader patterns where efficiency drives supplanted deep local engagement.^[72] Supporting evidence from academic analyses confirms that large-firm consolidations typically cut local content by reallocating resources to syndicated programming, thereby homogenizing output and weakening ties to community needs.^[74] Such shifts, opponents asserted, compromised viewpoint pluralism, as concentrated ownership curtailed independent editorial voices in affected markets.^[75]

Post-Merger Influence via Nexstar Integration

Nexstar Media Group completed its acquisition of Media General on January 17, 2017, for approximately $4.6 billion in a cash-and-stock transaction, acquiring all outstanding shares at $10.55 per share in cash, 0.1249 shares of Nexstar Class A common stock, and one share of preferred stock per Media General share.^[11]^[76] This deal expanded Nexstar's television station portfolio by roughly two-thirds, adding 171 stations across 100 markets and more than doubling its audience reach to approximately 39% of U.S. television households.^[11] Integration efforts post-merger focused on operational synergies, including centralized programming, shared services for news production, and unified digital platforms, which enabled cost efficiencies and enhanced local content distribution.^[43] Media General's affiliate relationships with major networks—such as CBS, NBC, and ABC in key markets like Richmond, Virginia, and Providence, Rhode Island—bolstered Nexstar's negotiating leverage for retransmission consent fees, contributing to revenue growth from $1.84 billion in 2016 to $2.32 billion in 2017.^[11]^[12] The combined entity, rebranded as Nexstar Media Group, gained significant market concentration, controlling 41% to 100% of broadcast television advertising revenues in several designated market areas (DMAs), prompting U.S. Department of Justice-mandated divestitures of 13 stations to mitigate antitrust concerns.^[12]^[77] This consolidation amplified Nexstar's influence in local broadcasting, facilitating greater emphasis on political advertising during election cycles and positioning it as the second-largest U.S. broadcaster by revenue and reach, a foundation for subsequent expansions.^[11]

References

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Media General was founded in 1940. Where is Media General headquartered? Media General is headquartered in Richmond, VA. What is the size of Media General ...
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The Company was founded in 1850 as a newspaper company in Richmond, Virginia, and later diversified into broadcast television. The Company has grown through ...
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Media General, Inc. - Company-Histories.com
In July of the following year the company reached a merger agreement with Park Acquisitions, Inc. worth more than $700 million. The purchase gave Media General ...
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Its history dates back to the 1850s when James A. Cowardin founded the Richmond Dispatch newspaper. Media General maintains headquarters in Richmond, Va., and ...
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Warren Buffett's big payday, and other notes on Media General's ...
Jun 13, 2013 · Media General's roots go back to the merger of Richmond's two papers in 1940. When Media General went public in 1966 and acquired the Tampa ...
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Legacy Media General was incorporated in Virginia and became a public company in 1969. It grew through acquisition, mostly by purchasing high-quality ...
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May 17, 2012 · A subsidiary of Berkshire Hathaway, BH Media Group, will purchase all of the newspapers owned by Media General, with the exception of the Tampa group, for $142 ...
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[19]
RICHMOND, Va. Media General income drops 38%
Oct 13, 2005 · The Richmond, Va.-based media company earned $9.8 million, or 41 cents a share, in the quarter ended Sept. 25. That compares with $15.7 million, ...
[20]
Press Release - SEC.gov
Media General Completes Sale of Two Television Stations to Hoak Media Corporation ... WMBB, which has approximately 70 employees, was acquired by Media General in ...
[21]
WUGA TV Back on the Air as WGTA TV Out of Toccoa - 92.1 WLHR
Jul 7, 2015 · Originally operating as WNEG TV in Toccoa for decades, Media General sold WNEG TV in 2008 to the University of Georgia Research Foundation.
[22]
Media General Reaches New Debt Agreement With Lenders
Dec 10, 2008 · Media General, the publisher of the Tampa Tribune, said it expects to reduce debt to about $730 million by yearend from about $898 million a ...
[23]
Media General And Young Broadcasting Agree To Merge - Deadline
Media General, Inc. (NYSE: MEG) and privately held New Young Broadcasting Holding Co., Inc., both local broadcast ...
[24]
Media General Completes Merger with Young Broadcasting
Nov 12, 2013 · In November of 2013, Media General and Young Broadcasting merged, combining Media General's 18 stations and Young's 13 stations into the 31 ...
[25]
FCC Approves Media General-Young Merger - Next TV
Nov 8, 2013 · The FCC has approved of the planned Media General-Young Broadcasting merger. Media General expects to close on the transaction November 12.
[26]
Media General Receives FCC Approval for Merger with Young ...
Nov 12, 2013 · "We're delighted to have FCC approval for the merger, the last step in the approval process. We are now in a position to close on the ...
[27]
Media General to buy LIN Media for $1.6 billion - Reuters
Mar 21, 2014 · Media General Inc said on Friday it would buy LIN Media LLC for $1.6 billion to create the second largest local TV broadcast company in the ...<|separator|>
[28]
Media General, LIN Media Announce $1.6B Merger - Deadline
Mar 21, 2014 · Based on LIN Media's pro forma net debt balance of $968 million at December 31, 2013, the transaction enterprise value is approximately $2.6 ...
[29]
TV Station Mega Merger: Media General, LIN Set $1.6 Billion Deal
Mar 21, 2014 · With LIN's roughly $1 billion in debt included, the deal has an enterprise value of $2.6 billion. The Media General-LIN union continues the ...Missing: date | Show results with:date
[30]
Media Bureau Approves LIN Media and Media General Transaction
Dec 12, 2014 · Approved the merger of Media General and LIN Media, and associated divestitures by Post-Merger Media General to Sinclair Broadcast Group, Hearst Corp., and ...<|control11|><|separator|>
[31]
Antitrust Division | U.S. v. Media General, Inc. and LIN Media LLC.
Oct 30, 2014 · Case Open Date: October 30, 2014. Case Name: United States v. Media General, Inc. and LIN Media LLC. Case Type: Civil Merger.
[32]
United States v. Media General, Inc. and Lin Media LLC; Proposed ...
Nov 13, 2014 · Pursuant to a Purchase Agreement dated March 21, 2014, Media General agreed to purchase LIN whereby LIN shareholders would receive aggregate ...
[33]
[DOC] DA-14-1810A1.docx - Federal Communications Commission
Currently, LIN Media holds licenses for 39 full power stations and 17 low power stations, while Media General retains licenses to 32 full power stations, 22 ...
[34]
meg20140724_defm14a.htm - SEC.gov
On March 21, 2014, Media General, Inc. (“Media General”) and LIN Media LLC (“LIN”) entered into a merger agreement providing for a business combination of Media ...
[35]
Media General, Meredith To Combine To Create ... - News Releases
Sep 8, 2015 · Media General will acquire all of the outstanding common stock of Meredith in a cash and stock transaction currently valued at approximately $2.4 billion.Missing: details | Show results with:details
[36]
Media General to Buy Meredith Corporation for $2.4 Billion
Sep 8, 2015 · The combined company will reach 30% of American TV households and will include a number of well-known magazines aimed at women.Missing: details | Show results with:details
[37]
TV Station Mega Merger: Media General, Meredith Set $2.4 ... - Variety
Sep 8, 2015 · Media General has set a $2.4 billion acquisition of Meredith Corp., creating a TV station colossus that will rank as the nation's third-largest ...Missing: details | Show results with:details
[38]
Media General, Meredith to merge; creating Meredith Media General
Sep 8, 2015 · The merger would create the third-largest local television station owner, initially with 88 television stations that reach approximately 34 ...
[39]
Nexstar Broadcasting Proposes To Acquire Media General For ...
Sep 28, 2015 · Nexstar Broadcasting Group, Inc. (Nasdaq: NXST) announced today a proposal to acquire Media General, Inc. (NYSE: MEG) for $10.50 per share in cash.
[40]
Media General rejects Nexstar's takeover offer, but open to talks
Nov 16, 2015 · Nov 16 (Reuters) - Media General rejected Nexstar Broadcasting Group Inc's $4.1 billion takeover offer, saying it significantly undervalued the ...
[41]
Nexstar Wins Battle For Media General with $4.6 Billion Deal - Variety
Jan 27, 2016 · Nexstar Broadcasting has won the fight to take over station group owner Media General, setting a $4.6 billion acquisition pact.
[42]
Nexstar Broadcasting Obtains Federal Communications ...
Nexstar will acquire all outstanding shares of Media General in an accretive cash and stock transaction valued at approximately $4.6 billion.Missing: aborted | Show results with:aborted<|separator|>
[43]
EX-99.1 - SEC.gov
Nexstar acquired all of the outstanding shares of Media General for $10.55 per share in cash, 0.1249 of a share of Nexstar Class A common stock and one ...Missing: merger | Show results with:merger
[44]
Revenue Sources: A Heavy Dependence on Advertising
Mar 26, 2014 · More than two-thirds (69%) of all domestic news revenue is derived from advertising. That amounts to roughly $43 billion of the $63 billion ...
[45]
[PDF] GAO-08-383 Media Ownership: Economic Factors Influence the ...
Mar 12, 2008 · The combination of large populations and relatively high disposable income helps produce substantial advertising revenues for the media outlets ...
[46]
Media General Exploring Potential Sale of Newspapers
Feb 22, 2012 · Media General, Inc. (NYSE: MEG) today announced that it is exploring the potential sale of newspaper operations.
[47]
Berkshire Buys Media General Newspapers for $142 Million
May 17, 2012 · The sale allows Media General to focus on its television business, according to the the company. Media General jumped 33 percent to close at ...Missing: divestiture | Show results with:divestiture
[48]
[PDF] Media General completed its transformation to a - AnnualReports.com
Jan 1, 2013 · Media General was incorporated in Virginia and became a public company in 1969. The. Company grew through acquisition, mostly by purchasing ...
[49]
Nexstar Broadcasting Group Enters Into Definitive Agreement To ...
Jan 27, 2016 · Nexstar Broadcasting Group enters into definitive agreement to acquire Media General for $4.6 billion in accretive cash and stock transaction.
[50]
Media General and the Balanced Scorecard (a)
Jun 10, 2009 · The balanced scorecard initiative was undertaken with the intention of breaking down the silos between Media General's three separate divisions ...
[51]
Media General and the Balanced Scorecard (B)
"Media General and the Balanced Scorecard (A) " (UV1135) describes the impetus for and the process of implementing a balanced scorecard (BSC) in a large, ...<|separator|>
[52]
Media General and the Balanced Scorecard (A) - ResearchGate
Aug 7, 2025 · Media General and the Balanced Scorecard (A) (UVA-C-2283) describes the impetus for and the process of implementing a balanced scorecard ...
[53]
Balanced Scorecard Adopters
Media General. Media. USA. Mercury Computer Systems, Inc. Information ... Balanced Scorecard · Strategic Planning · Key Performance Indicators · Objectives and ...
[54]
Media General posts profit, stock soars - Reuters
Jul 22, 2009 · Media General reported second-quarter net income of $20.6 million, or 90 cents a share, compared with a loss of $532.2 million, or $24.12 a ...Missing: performance | Show results with:performance<|separator|>
[55]
What Warren Buffett Saw In Newspapers - Forbes
Jan 2, 2014 · By the end of 2011, Media General, which also owned interests in TV broadcasting and digital media, was carrying high levels of debt despite ...<|control11|><|separator|>
[56]
Media General Shares Soar After Warren Buffett Agrees To Buy Its ...
May 17, 2012 · Media General shares are rocketing nearly 58% in pre-market trading this morning after the legendary investor agreed to pay $142M for 63 of its daily and ...
[57]
Media General, Inc. Announces Fourth Quarter and Full Year 2015 ...
Net revenues increased 69% to $366 million, compared to $217 million in the prior year. •. Net digital revenues increased 223% to $44 million, compared to $14 ...Missing: profits | Show results with:profits
[58]
History of Media General, Inc. – FundingUniverse
Key Dates: 1879: Bryan family forms Dispatch Co. 1896: Dispatch Co. acquires Richmond Leader. 1903: Richmond Leader merges with rival newspaper to form News ...Missing: 1923 | Show results with:1923
[59]
News Corp Split, Buffett's Bet Top Year of Big Media Ownership ...
Jun 26, 2012 · In May, 2012 Warren Buffett's Berkshire Hathaway Company announced the purchase of 63 newspapers, including 23 dailies, from the debt-ridden Media General ...
[60]
What I Learned From Warren Buffett's Investment In Media General's ...
Jan 7, 2016 · struck a deal with Media General in June 2012 to buy 63 of its newspapers ... newspapers to him and can now concentrate on TV stations and ...
[61]
Media General: Revenue, Competitors, Alternatives - Growjo
Media General's estimated annual revenue is currently $518M per year.(i) · Media General's estimated revenue per employee is $287,000 ...
[62]
TV Giant Created With Nexstar's $4.6 Billion Deal for Media General
Jan 27, 2016 · The combined company will operate 171 TV stations in 100 markets and reach approximately 39 percent of all U.S. TV households.<|control11|><|separator|>
[63]
meg20130718_s4.htm - SEC.gov
On June 5, 2013, Media General entered into the merger agreement with Young, Merger Sub 1, Merger Sub 2 and Merger Sub 3. The merger agreement provides for a ...
[64]
Media General, LIN Merging In $1.6B Deal - TV News Check
Mar 21, 2014 · The deal includes growing LIN's digital media holdings, including LIN Digital, LIN Mobile, Dedicated Media, HYFN, Nami Media and Federated Media ...
[65]
media general, inc. - SEC.gov
MEDIA GENERAL, INC. (Name of Registrant as Specified In Its Charter) ... acquisition of four NBC owned and operated television stations as well as ...
[66]
Media General Rebuts Harbinger: Dealtaker To Be Accretive
Mar 31, 2008 · Blockdot, it says, did revenue of $8 million in 2007, up three-fold from 2006, while turning a profit of $2.6 million. That acquisition cost $5 ...
[67]
Timeline of Investment Companies' Acquisitions and Divestures
In 2012, BH Media grew significantly when it bought Media General's newspapers. Since then, the company has continued to grow through smaller acquisitions ...
[68]
Media General, Young Broadcasting To Merge - TV News Check
The combination will create a company with 30 stations operating in 27 markets, reaching 16.5 million, or 14%, of U.S. TV households. On a pro forma basis, 2012 ...
[69]
Media General Revenue Up to $363M in Second Quarter | Next TV
Media General Friday reported revenues of $362.7 million in the second quarter. That figure is a 13% increase over last year and includes $10 million in ...
[70]
[PDF] Cease to Resist: - How the FCC's Failure to Enforce Its Rules ...
In June 2013, Media General announced its buyout of Young Broadcasting. The nearly $700 million deal involves 12 owned-and-operated stations and another ...
[71]
[PDF] Acquisitions and Content Sharing Shapes Local TV News in 2013
Mar 26, 2014 · Danilo Yanich of the University of Delaware says his research has determined that consolidation, in general, has had a negative effect on local ...
[72]
Nexstar Nation
### Summary of Criticisms Related to Nexstar's 2017 Acquisition of Media General
[73]
FCC Approves Nexstar-Media General Merger - Next TV
Jan 11, 2017 · Citing the proposed spin-offs to make the merger comply with local and national ownership rules, the FCC concluded that the merger is OK, and it ...
[74]
Media consolidation takes toll on local news but doesn't necessarily ...
Oct 20, 2021 · “This paper provides strong evidence that when a large corporation takes over a news station, the amount of local content produced diminishes.
[75]
Remote Control: How Consolidation Is Changing Local TV News
Dec 11, 2024 · Social media's rise as a dominant news source has disrupted local newspapers and other legacy media models. But it has yet to unseat ...
[76]
Nexstar Completes $4.6B Acquisition Of Media General - Deadline
Jan 17, 2017 · That's a wrap for Media General: Nexstar Broadcasting completed its $4.6 billion cash-and-stock acquisition of the TV station owner today, ...
[77]
Update 2025.4 - Nexstar Media Group (NXST)
Sep 15, 2025 · Notable acquisitions include Medial General in 2016, Tribune in 2019 and the recently announced acquisition of TEGNA in 2025. What happened ...Missing: criticisms | Show results with:criticisms