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TIME ON ITS HANDS. Meredith (MDP.N) has agreed to promote 17 local U.S. TV stations to Gray Tv (GTN.N) for $2.7 billion in money, about 10 times the property’ adjusted EBITDA. It’s miles a delayed reaction to Meredith’s failure bigger than 5 years ago to bulk up its TV property and leaves the firm centered on magazines.
In 2015, Meredith had designs on broadcaster Media Usual. But rival Nexstar Media (NXST.O) swooped in and snatched the target, paying $4.1 billion together with debt or about 9 times EBITDA. Meredith within the kill sold magazine publisher Time Inc as a substitute, together with titles have Other folks. It would additionally no longer occupy been the appropriate option: Meredith’s shares occupy slipped by a third over 5 years, while Nexstar’s occupy when it comes to tripled.
In the end Monday’s deal pegs the valuation of Meredith’s TV properties at a bigger just a few than Media Usual’s reduction then and brings in some money. It’s miles a little victory for Meredith boss Tom Harty to thrill in as he makes the most attention-grabbing of what is left. (By Jennifer Saba)
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