Hearst is planning to buy all of the shares of Hearst-Argyle Television that it doesn’t already own for approximately $600 million.
The company will launch a tender offer in September to purchase the remaining 48% of class-A common stock it doesn’t own at a price of $23.50 apiece -- approximately a 15% premium over the closing price Aug. 23 and the average close of the previous four weeks.
Hearst, a diversified media company with publishing and cable assets, already owns 100% of the class-B stock and, following the tender, Hearst-Argyle would be a wholly owned subsidiary.
Broadcasting operator Hearst-Argyle’s assets include 29 television properties and two radio stations.
Shares of Hearst-Argyle stock surged into the close Friday afternoon on the news. The stock was up 22% on heavy volume to close the day at $24.93 per share.
