Media General is cutting back the price it’s paying to buy rival LIN Media, after a LIN television station lost its CBS network affiliation, reports Bloomberg.
Media General is lowering its purchase price by $110 million by cutting the stock portion of its earlier $1.6 billion offer, the companies said in a statement.
“Media General revised the deal after New York-based CBS Corp. (CBS) terminated its affiliation with LIN’s WISH-TV in Indianapolis last week. The network switched to Tribune Media Co.’s WTTV-TV after negotiating a better deal. CBS has been pressing affiliate stations for a larger share of the money they receive from pay TV operators,” Bloomberg notes.
“Today’s amendment to the merger agreement is a technical recalibration in light of the change in affiliation status of WISH-TV,” LIN Chief Executive Vincent Sadusky said on a conference call.
In the three days after CBS announced the switch, LIN’s stock declined 13 percent, the piece adds.