Nexstar Makes $4.1B Bid to Buy Media General

Nexstar Broadcasting offered to buy Media General in a $4.1 billion deal it says would create more value than Media General’s plan to acquire Meredith Corp.

Nexstar said the main advantage of its proposal is that it would create a pure-play broadcasting company versus one that has the low-margin publishing assets owned by Meredith.

“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 Perry Sook, chairman and CEO of Nexstar.

A Nexstar-Media General combination would have 162 stations in 99 markets reaching 39% of the U.S., compared with the Media General-Meredith combination, which would have 82 stations in 54 markets, reaching 30% of the U.S.

The combination would present $75 million in synergies in the first year, compared with the $60 million expected by the Media General-Meredith deal.

The Nexstar bid would pay $10.50 a share in cash and 0.0898 Nexstar shares per Media General share. That’s valued by Nexstar at $14.50 a share, and 30% higher than Media General’s closing stock price on Sept. 25.

Any deal would be contingent on FCC and Department of Justice regulatory approvals.

Jon Lafayette

Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.