Publisher agrees to join forces with Media General.

The world's third largest licensor, Meredith Corporation, has signed a definitive merger agreement with Media General to create a new multi-platform media company that will be known as Meredith Media General.

Meredith reported $17.7 billion in retail sales of licensed merchandise in 2014, according to the License! Global Top Licensors report.

Under the agreement, Media General will acquire all of the outstanding common stock of Meredith in a transaction currently valued at approximately $2.4 billion.

Upon the closing of the transaction, Media General shareholders will own approximately 65 percent of the new company, and Meredith shareholders will own approximately 35 percent.

The new company will boast a portfolio of best-in-class media platforms including becoming the third-largest local television station owner in the U.S., reaching approximately 34 million households. Meredith Media General will also have a leading role in the women's market, reaching 100 million unduplicated American women and over 60 percent of U.S. Millennial women across brands that include Better Homes and Gardens, Allrecipes, Parents and Shape. The company will also have a strong digital presence, reaching more than 200 million monthly unique visitors via a combination of national and local consumer sites, as well as business-to-business digital capabilities in key growth sectors such as content, mobile, social, video and native advertising.

The Board of Directors of Meredith Media General will consist of 12 directors, eight appointed by Media General and four appointed by Meredith with J. Stewart Bryan III, current Media General chairman, serving as chairman of the Meredith Media General board. Meredith chief executive officer Stephen M. Lacy will lead Meredith Media General as CEO and Meredith president Joseph H. Ceryanec will be chief financial officer. The balance of Meredith Media General’s senior management team will be a combination of the two existing companies' executive teams.

“We are excited about the opportunity to create a powerful new multi-platform and diversified media company with significant operations on the local and national levels," says Lacy. "This merger will create a strong and efficient company positioned to realize the significant earnings and cash flow potential of local broadcasting; leverage the unparalleled reach and rich content-creation capabilities of Meredith’s national brands; and capture the rapidly developing growth potential of the digital media space. It also positions Meredith Media General to deliver enhanced shareholder value and participate in future industry consolidation.”