RTTNews | May 3, 2021 10:56AM EDT

10:56 Monday, May 3, 2021 (RTTNews.com) - Shares of Meredith Corp. (MDP) are gaining nearly 6% on Monday after the media company said it has agreed to agreed to sell its local media group to Gray Television Inc. (GTN) for $2.7 billion in cash.

MDP is currently trading at $32.94, up $1.84 or 5.92%, on the Nasdaq.

The all-cash deal is structured as a spinoff of Meredith's magazine group National Media Group as a separate company, which will retain the Meredith name and ticker symbol. The Gray Television will buy Meredith's Local Media Group assets, which include affiliates of Fox and CBS in cities such as Atlanta, Las Vegas and Portland, Oregon.

Meredith shareholders will receive cash consideration of about $14.50 per share and 1-for-1 equity share in post-close Meredith.

Read the original article on RTTNews ( https://www.rttnews.com/3190837/stock-alert-meredith-to-sell-tv-stations-to-gray-television-for-2-7-bln-shares-up-6.aspx)

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