Media General Inc. received approval Friday from the Federal Communications Commission to merge with New Young Broadcasting Holding Co.
FCC approval came one day after shareholders of the Richmond-based broadcasting company approved the deal to create a company with 31 television stations in 28 U.S. markets. Media General will gain ownership of WRIC-Channel 8 in Richmond as part of the merger.
Media General expects to close on the transaction Tuesday.
“We’re delighted to have FCC approval for the merger, the last step in the approval process,” George L. Mahoney, president and chief executive of Media General, said in a statement.
The FCC approved Media General’s applications seeking consent to transfer the broadcast television licenses for Media General’s 18 stations and Nashville, Tenn.-based New Young Broadcasting’s 13 stations to a new post-merger entity.
The FCC denied informal objections to the merger filed by Spartan-TV and Dish Network Inc. Dish has accused Media General of not negotiating in good faith over TV channel retransmission fees.
Under the deal approved by shareholders, Media General’s dual-class stock structure will be eliminated by creating a class of voting common stock.
Media General will reclassify all the outstanding shares of its Class A stock and the super-voting Class B stock into shares of a new class of voting stock. Shareholders will receive one share in the new company for each share they currently own.
After the merger, Media General stockholders will own about 32.5 percent of the combined company’s shares.
Investors in the privately held New Young Broadcasting will own about 67.5 percent of the combined company.