THE DEAL: Broadcast companies Media General Inc. and New Young Broadcasting Holding Co. have agreed to combine in an all-stock deal. The combined company will operate 30 TV stations in 27 markets including San Francisco, Nashville, Tenn., and Richmond, Va.
THE BENEFITS: The companies say that by combining, the stations will be more geographically diverse and will be in more markets that have strong ad revenue from political campaigns. Having more stations will also give the companies more bargaining power in negotiations.
THE REACTION: Media General's stock jumped after the announcement.