Media General has rejected Nexstar Broadcasting Group's $1.9Bn unsolicited acquisition proposal but is still open to negotiations.
At the same time, Meredith has a $2.8 billion offer on the table for Media General and is proceeding with the merger despite those talks.
"Meredith understands Media General Board's fiduciary responsibility to respond to the Nexstar proposal consistent with our binding merger agreement announced on September 8, 2015,” the company said. “However, Meredith still remains confident that the combination of Meredith and Media General will generate superior shareholder value – over both the near- and long-term – as compared to a potential Nexstar transaction."
It added, “we are making significant progress on achieving key regulatory approvals needed to complete the transaction; our joint integration work has already identified additional synergies; and the Meredith and Media General Boards of Directors continue to recommend the Meredith-Media General transaction."
If Media General decides to take a better deal from Nexstar, Meredith will have the opportunity to review and propose an alternative superior proposal, which could spark a bidding war for the broadcast group.
A Meredith Media General tie-up would have $3 billion in revenues, and more than 80 television stations across 54 markets that reach 34 million US TV households. These local broadcast assets will include 25 Big Four network-affiliated TV stations in the Top 50 DMAs, making Meredith Media General the largest owner of Big Four stations in Top 50 markets.
At the same time, Meredith has a $2.8 billion offer on the table for Media General and is proceeding with the merger despite those talks.
"Meredith understands Media General Board's fiduciary responsibility to respond to the Nexstar proposal consistent with our binding merger agreement announced on September 8, 2015,” the company said. “However, Meredith still remains confident that the combination of Meredith and Media General will generate superior shareholder value – over both the near- and long-term – as compared to a potential Nexstar transaction."
It added, “we are making significant progress on achieving key regulatory approvals needed to complete the transaction; our joint integration work has already identified additional synergies; and the Meredith and Media General Boards of Directors continue to recommend the Meredith-Media General transaction."
If Media General decides to take a better deal from Nexstar, Meredith will have the opportunity to review and propose an alternative superior proposal, which could spark a bidding war for the broadcast group.
A Meredith Media General tie-up would have $3 billion in revenues, and more than 80 television stations across 54 markets that reach 34 million US TV households. These local broadcast assets will include 25 Big Four network-affiliated TV stations in the Top 50 DMAs, making Meredith Media General the largest owner of Big Four stations in Top 50 markets.