Nexstar Broadcasting Group, Inc declared today a proposition to acquire Media General, Inc. for $10.50 per share in real money and an altered proportion of 0.0898 Nexstar shares per Media General share.
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Monday’s announcement saw Media General stock jump almost three points to a day high of $14.15 before closing at $13.64.
The total value of the transaction is $4.1 billion including debt, according to Bloomberg News.
It is imperative to state that Media General had earlier this month made a .4 billion offer for Meredith which owns television stations and publishes 20 magazines. He said Media General’s board has refused to engage with his company while it pursues what he called an “ill conceived and value destructive acquisition with Meredith“.
Meredith Corporation owns several magazines like Better Homes and Gardens and Martha Stewart Living, meaning Medial General would have a bigger market in print media if the offer were to go through.
Activist investment shop Starboard Value is pushing Media General (MEG) to acquiesce to a fresh takeover bid and step away from its acquisition of Meredith (MDP).
Media General shares have slumped since it unveiled its plan to merge with Meredith.
Media General’s recent bid to become the third-largest owner of TV stations in the country has prompted a counteroffer from a larger rival.
Don’t hold your breath on that Media General-Meredith tie-up.
Nexstar, based in Irving, Texas, has a portfolio of more than 100 TV stations in 58 markets, covering about 18% of USA television households.
“We believe a combination of Nexstar and Media General is highly strategic”, Starboard wrote in the letter, threatening a proxy fight to replace the company’s board if ignored, and seeking “constructive engagement”.
Media General quickly confirmed Nexstar’s offer, but refrained from taking any official position on the proposed deal.
BofA Merrill Lynch is going about as financial consultant and Kirkland & Ellis LLP is going about as legitimate direction to Nexstar regarding the proposed exchange.
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And the deal with Meredith, which is expected to close next June, is largely viewed as a broadcast-oriented deal leaving industry watchers to wonder what Media General would end up doing with Meredith’s National Media Group.
