Nexstar Broadcasting, attempting to drive to wedge between Media General and Meredith Corp., offered almost $1.9 billion to buy Media General on Monday. The offer is 30 percent higher than Media General’s closing price on September 25.
Advertisement
Nexstar has offered $10.50 per share in cash, and 0.0898 of its shares per Media General share held.
In a written release associated with the announcement Sook says, “The transaction we are proposing would be a transformational event for both Nexstar and Media General shareholders and would deliver superior, immediate and long-term value to Media General’s shareholders compared with Media General’s proposed acquisition of Meredith“. The total value is is offer about $4.1 billion, including debt.
Media General shareholders didn’t react well, driving down the company’s stock that day even though it has since regained ground-in part on speculation Nexstar would make a bid.
The Media General-Meredith deal is suddenly not such a sure thing.
Meredith is known for magazines such as Better Homes Gardens and Family Circle.
It also said the combined company would be the second-biggest owner of major network affiliates, reaching 39 percent of all US television households. Media General recently announced it was buying Meredith for $2.4 Billion. “The combined company’s significantly expanded audience reach and portfolio diversification would be highly attractive to programmers and advertisers alike, and its enhanced operating and financial scale would position it for near- and long-term success in an environment of ongoing industry consolidation”. Media General will have no further comment on the proposal until the Board has completed its review. A few years ago the Richmond, Virginia-based company sold off all its newspapers to Berkshire Hathaway, and it was expected to sell off Meredith’s magazines after the deal went through. Media General shareholders are advised to take no action at this time.
But Nexstar argues that it would make a better partner for Media General. That followed similar moves by Tribune Media Co. and News Corp, publisher of the Journal.
Advertisement
Nexstar has for several months attempted to open negotiations with Media General, according to a letter from Nexstar Chairman and CEO Perry Sook.
