Media General has one of the industry’s largest and most diverse digital media businesses that includes LIN Mobile, Federated Media, HYFN, Dedicated Media and BiteSizeTV, all under the LIN Digital banner. Current Media General shareholders will also be entitled to the proceeds from the sale of any Media General spectrum in the FCC’s incentive auction.
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In exchange for terminating the merger agreement, Meredith will receive $60 million in cash payable immediately.
Nexstar is a television broadcasting and digital media company focused on the acquisition, development and operation of television stations and interactive community websites in medium-sized markets.
A proposed merger between Media General and Merdith Corporation was terminated.
Nexstar Broadcasting Group Inc. of Irving, Texas said Wednesday that it will pay about $2.2 billion in a mix of stock and cash for Richmond, Virginia-based Media General Inc.
In fact, Nexstar CEO Perry Sook made that same point during his efforts to break up the Meredith-Media General deal. You should also read Meredith’s and Media General’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2015.
The transaction is not subject to any financing condition and Nexstar has received committed financing for the transaction totaling $4.7 billion from BofA Merrill Lynch, Credit Suisse and Deutsche Bank.
With its shares down 25% in the a year ago, Meredith could use the cash windfall to buy back more stock and increase its dividend that pays out $1.83 a share annually, according to a person familiar with the company’s thinking.
However, Meredith noted that there was no assurance that Media General and Meredith will reach agreement with respect to a purchase of any broadcast and digital assets.
The Nexstar-Media General deal follows the termination of a competing merger proposal between Meredith Corp. and Media General.
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“We are pleased to have this matter behind us and look forward to working towards completion of our transaction with Nexstar, which we believe is in the best interest of Media General and delivers superior value to our shareholders”, Media General Chief Executive Officer Vincent L. Sadusky said in a statement Wednesday.
