Media General said in September that a deal with Meredith would create a company with nearly 90 television stations in 54 markets and magazines including Better Homes and Gardens and Martha Stewart Living.
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Meredith, which said its “joint integration work has already identified additional synergies”, added that under the deal it will have the chance to examine and offer an alternative proposal to a potential third party agreement Media General might make.
Media General said its board of directors was still endorsing the Meredith merger as the better course of action for the company that owns 71 stations serving 48 markets.
Meredith is the parent of KMOV (Channel 4), the CBS affiliate in St. Louis.
‘We are eager to move forward with discussions with Media General regarding our proposal, while at the same time maintaining our financial discipline.
Nexstar on September 28 had offered $10.50 per share in cash and 0.0898 of its shares for each Media General share, valuing the company at $14.50 per share.
Of the convincing features of Meredith Media General, Meredith cited the combined company’s reach of 30% of TV households and over 60 percent of USA millennial women, $500 million projected first-year revenue and more than 200 million monthly unique digital platform visitors. “It is evident since our initial announcement that Media General and Nexstar shareholders recognize the compelling strategic and financial value that a Media General-Nexstar combination presents for both companies and our respective shareholders”.
A deal between the two will create the second-biggest local TV station operator in the United States.
“The proposal substantially discounts Media General’s standalone growth prospects”, the company said.
A deal with Nexstar is not guaranteed, Media General said in a statement.
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Media General shares were down 1.9 percent at $15.17 in morning trading on Monday. The documents filed by Media General and Meredith Media General may also be obtained for free from Media General’s Investor Relations web site (http://www.mediageneral.com/investor/index.htm) or by directing a request to Media General’s Investor Relations contact, Courtney Guertin, Director of Marketing & Communications, at 401-457-9501.
