Nexstar clinches Media General acquisition_08.01.2016
After months of negotiation, Nexstar Broadcasting Group has reached a deal to acquire Media General.
Nexstar said it will sign the definitive agreement once Media General officially terminates its transaction with Meredith Corp. Meredith’s offer was trumped by Nexstar. For each Media General share, the transaction would pay $10.55, plus 0.1249 of a Nexstar share.
"We are pleased to have negotiated these transaction terms with Media General as we believe the combination would be a transformational event that enables both companies' 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, led by a proven broadcast and digital media management team," said Perry Sook, CEO of Nexstar.
He added: "We are confident that a combined Nexstar/Media General would be strongly positioned for long-term success in a dynamic and consolidating broadcast market. Specifically, the combined company would be highly attractive to programmers and advertisers alike, while the anticipated year-one synergies of $76 million and generation of over $500 million of annual free cash flow will enhance long-term shareholder returns," Sook said.
Nexstar said it would divest the local TV stations necessary for FCC approval for the deal. In addition, Nexstar's board of directors will add two Media General directors.