(Adds deal details, share price)
May 3 (Reuters) - Meredith Corp said on Monday its plans to sell its television stations business to broadcaster Gray Television Inc for an enterprise value of $2.7 billion, and spin off its magazines division.
Gray will buy all outstanding shares of Meredith for about $14.50 per share in cash, after Meredith spins off its magazine unit National Media Group (NMG).
As part of the deal, Gray will buy Meredith’s operating division, Local Media Group, which owns 17 television stations in 12 local markets, including CBS, NBC and Fox in Atlanta, Georgia, Las Vegas and Portland.
Following the sale of Local Media Group, NMG will focus on growing its brands including People, Better Homes & Gardens and Allrecipes.
Meredith’s shares rose about 5% to $32 in early trading. (Reporting by Eva Mathews and Tiyashi Datta in Bengaluru; Editing by Shounak Dasgupta)