A Texas company hopes to scuttle a tentative $2.4 billion deal between television station owners Media General and Meredith Corp.
Nexstar Broadcasting on Monday morning made a public appeal to acquire Media General for $4.1 billion.
Media General, which owns ABC-affiliated WTNH and 70 other stations, reached a $2.4 billion agreement earlier this month to take over Meredith, which owns CBS-affiliated WFSB and 16 other stations.
But Nexstar argued Monday that its offer is a better option for Media General, which is headquartered in Virginia, than its deal with Meredith, which is based in Iowa.
“This 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,” Perry Sook, Nexstar’s chairman, president and CEO, said in a statement.
But Media General might disagree.
Nexstar said the company has refused “for many months” to engage in negotiations and “has instead pursued an ill-conceived and value-destructive acquisition of Meredith…”
Nexstar is offering $10.50 in cash per Media General share, plus nearly one-tenth of a Nexstar share for each Media General share. The total offer amounts to $14.50 per share — 30 percent above Meredith’s Sept. 25 stock closing price, Nexstar noted.
A deal between Nexstar and Media General would provide greater household reach, have less overlap in top 100 markets, and provide more first-year synergy savings, Nexstar argues.
Media General issued a press release Monday confirming receipt of the offer and saying it is under review by board members.
