Hearst has informed Hearst-Argyle Television that it will purchase all of the shares "validly tendered" following its tender offer for the broadcaster's Series A shares, which expired at 5 p.m. yesterday.
According to a statement, Hearst has advised Hearst-Argyle that as of the expiration, a total of approximately 13,763,289 shares of Hearst-Argyle Series A Common Stock had been tendered. Coupled with the shares already owned by Hearst, it will hold approximately 96% of the 94,254,329 outstanding shares of Hearst-Argyle common stock.
Hearst had initially offered $4 a share in March, and upped it to $4.50 in April. In the summer of 2007, Hearst had made an offer of $23.50 a share. Multiple insiders on the deal said this week they'd be shocked if Hearst didn't succeed in its bid.
Hearst has advised Hearst-Argyle that after it completes its purchase, it will move ahead on a merger in which Hearst-Argyle will become a wholly-owned subsidiary of Hearst and change its name to Hearst Television Inc. In the merger, all shares held by the remaining public shareholders of Hearst-Argyle will be cancelled and, subject to the shareholders' rights to exercise statutory appraisal rights, converted into the right to receive $4.50 per share in cash, without interest.
Hearst plans to complete the merger within the next several business days, it says, at which point Hearst-Argyle's shares will no longer be traded on the New York Stock Exchange.
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Michael Malone is content director atB+C andMultichannel News. He joinedB+Cin 2005 and has covered network programming, including entertainment, news and sports on broadcast, cable and streaming; and local broadcast television, including writing the "Local News Close-Up" market profiles. He also hosted the podcasts "Busted Pilot" and "Series Business." His journalism has also appeared inThe New York Times,The L.A. Times, The Boston Globe andNew York magazine.
