KTRE-TV’s Parent Company Announces Merger With Raycom Media, Inc.
August 26, 2005 at 1:04 PM CDT - Updated July 26 at 5:20 PM
The Liberty Corporation (NYSE: LC) announced today that it has entered into a definitive merger agreement with Raycom Media, Inc. Pursuant to the terms of the merger, Raycom will pay cash consideration of $47.35 per share of Liberty common stock and will assume approximately $110 million of debt for a total enterprise value of approximately $987 million. Based in Montgomery, Alabama, Raycom is a privately held television broadcaster with 37 stations in 28 markets.
The closing of the transaction is subject to the approval of Liberty’s shareholders, the approval of the Federal Communications Commission and other customary conditions. Liberty shareholders owning approximately 20% of Liberty’s outstanding shares have agreed to vote in favor of the merger.
According to Hayne Hipp, Chairman and CEO of Liberty, “Broadcasting has been essential to the success of Liberty Corporation for 70 years of the century we’ve been in business. The transaction we announce today is testimony to the exemplary reputation we’ve built as both a standard-bearer in the industry and a champion of each community in which we serve. In Raycom, we have found a company whose stellar record of public service and commitment to local news and information mirror our own. This transaction will afford our employees the opportunity to flourish within a company dedicated to the television broadcasting business, and enable our shareholders to realize full and fair value.”
A major group broadcaster, Liberty owns fifteen network-affiliated television stations, including eight NBC affiliates (WAVE-TV, Louisville, KY; WIS-TV, Columbia, SC; WLBT-TV, Jackson, MS; WFIE-TV, Evansville, IN; WSFA-TV, Montgomery, AL; KCBD-TV, Lubbock, TX; WALB-TV, Albany, GA and KPLC-TV, Lake Charles, LA); five ABC affiliates (KLTV-TV, Tyler, TX; KTRE-TV, the satellite affiliate of KLTV in Lufkin, TX; WLOX-TV, Biloxi, MS; WWAY-TV, Wilmington, NC and KAIT-TV, Jonesboro, AR); and two CBS affiliates (WTOL-TV, Toledo, OH and KGBT-TV, Harlingen, TX).