Nexstar Broadcasting has announced a proposal to buy Media General for $4.1 billion.
“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,” said Nexstar president, chairman and CEO Perry Sook. “Our proposal provides a significant premium to Media General’s shareholders, including a cash component nearly equal to Media General’s current share price. Our proposal would also enable Nexstar and Media General shareholders to participate in the near- and long-term upside of a pure-play broadcasting company with expanded audience reach, a more diversified portfolio, and a significantly stronger financial profile, including substantial free cash flow per share, led by a proven broadcast and digital media management team. Nexstar is already growing rapidly as a result of our organic and M&A initiatives, but a combined Nexstar/Media General would be even better positioned for long-term success in a dynamic and consolidating market and certainly better positioned to deliver shareholder value than a combined Media General/Meredith.”
“Given the compelling strategic and financial value of a combination,” added Sook. “it is illogical that Media General’s Board has refused to engage with us and has instead pursued an ill-conceived and value-destructive acquisition of Meredith that would once again expose Media General shareholders to the risks of the low-margin publishing business. We believe our offer is compelling and provides a value-building path forward for both Media General and Nexstar shareholders. We look forward to engaging in dialog with the financial community regarding the superior merits of our proposed transaction.”
The proposal is currently valued at $14.50 per Media General Share, which represents a 30 percent premium to Media General’s closing stock price on Sept. 25.