Media General in Driver s Seat to Choose Nexstar s Pure-Play Broadcasting Proposal Over Meredi s Publishing ts
28/09/2015
If you're Media General, you suddenly say, wow, I'm the prettiest girl at the prom. I can pick from two different people. That would seem to tell me I could bid them up,' said Larry Patrick, founder and managing partner, Patrick Communications. They are two offers from two very respectable companies. It gets down to the Media General shareholders as to where they want to be, who they want to be lined up with.
Nexstar's unsolicited $4.1 billion bid - which would create a company with 162 stations in 99 markets reaching 39% of the U.S., all higher numbers than the Meredith Media General merger - was not a surprise to Patrick, who said that after the Meredith deal was announced, Wall Street and publications were questioning whether there was a better fit.
The morning news was no shock to Elliot B. Evers, managing director of Media Venture Partners, either. Given how the street has reacted to the Meredith deal, to see something like this, pure-play without publishing, it's not surprising, he said. Does Media General want to be a buyer or a seller? That's a key set of considerations.
As reputable as Nexstar CEO Perry Sook is in negotiating retrans consent, Bill Hague, executive VP, Frank N. Magid Associates, said that a key component is how the company's culture fits with the other's, especially in the investment of local news and programming.
One of the biggest talking points has been Meredith's digital and publishing assets - brands like Better Homes and Gardens, Shape and AllRecipe.com- compared to the pure-play broadcasting company Nexstar is offering.
Evers said he doesn't understand the desire for print. I'm not hopeless on print, but I'm pretty down on print. It's tough to make money with magazines, he said. It's hard for me to believe that Media General wants an exposure to print. My gut, my instinct is that it's all about broadcast.
It would be irresponsible (of Media General) not to give some serious thought to what's on the table.
Media General declined to comment beyond its morning response that it will review the bid.
Each is going to say, we're prettier and better for you and have better management, Patrick said. It's going to be an interesting battle. If I were betting, I'd give a slight edge to Nexstar at the moment. I think it will be close.
At the time, Media General probably thought its deal with Meredith was perfect, Patrick said, or perhaps Media General was under obligation not to engage when Nexstar approached last month with its private proposal.
Both Patrick and Evers called Nexstar's deal compelling. It represents a 30% premium to Media General's Sept. 25 closing stock price. Patrick said those numbers are usually in the single digits or very low double digits, not 30%.
It tells me, Nexstar is going full guns blazing here to try to take this deal away from Meredith, Patrick said. If you're a shareholder and want to be here for the long term and believe in TV, you very well might say well this is a faster better deal to get me to the top.
The Nexstar proposal also presents Media General the opportunity to become the second biggest owner of major network affiliates, rather than the third with Meredith, and includes some pretty persuasive slides from Sook.
He's trying to get Media General shareholders to tap the brakes and slow down on Meredith and at least give him a look at it, Patrick said. It doesn't cost Perry much to do this.
The next step, Patrick said, is for Media General to have its board or independent directors get an evaluation opinion from outside lawyers and Wall Street advisors and share that with its shareholders as protection from a possible lawsuit. A respected Wall Street firm blessing the deal is not a perfect shield against a shareholder lawsuit, Patrick said, but it's 99% bulletproof that you will withstand an attack.
While Media General has two deals to consider, Patrick said one thing is certain: I wouldn't think the deal on the table is the last and final deal for either of them.
LINK: | http://www.broadcastingcable.com/news/currency/media-general-drivers-s... |
See more stories from bandc |
Most recent headlines
04/08/2024
Dalet Appoints Santiago Solanas as CEO to Lead Next Era of Growth and Innovation
Dalet, a leading technology and service provider for media-rich organizations, is excited to announce Santiago Solanas as its new Chief Executive Officer (CEO)....
03/06/2024
Dalet and Veritone Reach Agreement to Distribute, Transact and Monetize Media Archives
Dalet, a leading technology and service provider for media-rich organizations, a...
23/05/2024
Diamond Sports Group Inks New Deal with Fubo
SOUTHPORT, Conn. Diamond Sports Group has reached a multi-year renewal of its distribution agreement with FuboTV Inc. for the continued carriage of Diamond'...
23/05/2024
Brainstorm Expands Operations in N. America with New Office and Staff
AUSTIN, Texas Brainstorm, a provider of real-time 3D graphics and virtual studio solutions, is excited has opened a new office and Demo Studio in Austin, Texas ...
23/05/2024
FCC Proposes Rules Requiring Disclosure of AI Content in Political Ads
WASHINGTON, D.C. As concerns grow about the potential impact of fake AI-generated photos and videos being used to influence elections, Federal Communications Co...
23/05/2024
Brightline Launches 'Streamline' Self-Service Design Studio
NEW YORK BrightLine has announced the launch of StreamLine, the self-service, automated tool for clients to design, build, and publish interactive and dynamic a...
23/05/2024
TNT Sports to Air College Football Playoff Games
With NCAA college football moving to a new, greatly expanded playoff format for the National Championship this year, ESPN and TNT Sports have reached a five-yea...
23/05/2024
Advanced Systems Group Launches AI and Advanced Analytics...
Advanced Systems Group, LLC (ASG), a technology and services provider for media creatives and content owners, launched its AI and Advanced Analytics practice,...
23/05/2024
Glensound Exhibits New AoIP Interface Products at InfoCom...
Glensound, industry leader in high quality audio systems, is exhibiting for the first time at InfoComm 2024. The company is demonstrating why it has such an env...
23/05/2024
Shotoku to Bring Advanced Version of TR-XT Control System...
Shotoku Broadcast Systems, international manufacturer of high-quality, easy-to-use, robust and reliable camera support systems, has announced plans to exhibit b...
23/05/2024
Beckview Studios Celebrates One-Year Anniversary With NUG...
Based in Scalby Village, Scarborough, Beckview Studios is one of North Yorkshire's largest, one-stop recording studios in the area. Since its opening in May...
23/05/2024
Tximist Foundation and Pixellot Team Up to Broadcast Wome...
Pixellot, the global leader in AI-automated video and data solutions for sports, is proud to announce a partnership with Tximist Foundation to broadcast all Txi...
23/05/2024
Accedo Supports ITV to Extend ITV X to Sony Playstation 4...
Global video solutions provider, Accedo, has worked with ITV, the UK's largest commercial broadcaster, to bring its streaming service, ITVX to PlayStation 4...
23/05/2024
Inaugural World Skills Cafe to address skills and diversi...
The Global Media and Entertainment Talent Manifesto, an organisation working to address the skills shortage across the media technology sector, today announces ...
23/05/2024
WRAL Documentary Team wins Regional Murrow Award
A trio from WRAL-TV has been honored with a 2024 Regional Edward R. Murrow Award for the WRAL documentary Ghosts in the Stadium. The Radio Television Digital Ne...
23/05/2024
World Premiere: Software Rpublique unveils its U1st Vision conceptA first in citizen-centric mobile services with a focus on health
Facebook Twitter LinkedIn Software R publique's U1st Vision technolo...
23/05/2024
May 22, 2024
Scripps Research scientists uncover new molecular drivers of Alzheimer's By recording detailed electrical and protein measurements of individual brain cell...
23/05/2024
Rohde & Schwarz extends ultra-wideband RF amplifier range
Rohde & Schwarz extends ultra-wideband RF amplifier range Higher field strengths for critical test environments Rohde & Schwarz, a global leader in test an...
22/05/2024
X2O Media Appoints Pang Yee Loy as Regional Manager to Lead Expansion into the APAC Market
MONTR AL - 23 May 2024 - X2O Media, a global provider of hybrid learning and tra...
22/05/2024
Richard Linklater's Hit Man Asks, How Far Will You Go For Love?
Richard Linklater and Glen Powell (photo by George Pimentel/Shutterstock for Sundance)...
22/05/2024
Introducing Spotify Mix, Our New and Exclusive Font
Spotify is as unique and personal as each listener who's plugged in daily, as well as the artists and creators who have found a home on our platform. We nev...
22/05/2024
ST Engineering iDirect and Arabsat strengthen partnership for expanded market access on Arabsat BADR-7 and 6A Broadband Managed Services
iDirect Hub infrastructure technology supports Arabsat's ambitions to expand...
22/05/2024
The Future of Sustainable Film & TV Production
Anton/Bauer Unleashes Salt-E Dog The industry-first 9kWh sustainable power supply uses salt-based power cells to replace lithium, marking a new era of environme...
22/05/2024
NewsNation to Expand To 24/7 Cable News Network
CHICAGO, Ill. Nexstar's NewsNation has announced that it will expand its news programming to 24-hours-per-day Monday through Sunday, beginning June 1....
22/05/2024
Adobe Launches Adobe Express for Enterprise
SAN JOSE, Calif. Adobe has launched the new Adobe Express for Enterprise, which Adobe said is designed to help businesses improve marketing content creation and...
22/05/2024
The Power of Making Great Projects Shouldn't be Wasted
The Power of Making Great Projects Shouldn't be Wasted Andy Marken May 22, 2024 0 Comments I love you, Molly. I've always loved you, Sam. ...
22/05/2024
J SPORTS Installs Blackmagic Design Workflow for On Demand Streaming
J SPORTS Installs Blackmagic Design Workflow for On Demand Streaming Brie Clayton May 22, 2024 0 Comments Blackmagic Design today announced that J SPO...
22/05/2024
Creating a Particle Man Resolve Fusion
Creating a Particle Man Resolve Fusion Simon Ubsdell May 22, 2024 0 Comments A simple but effective use of particles driven by an animated 3D characte...
22/05/2024
Flo Rida, Donny Osmond Set For Fox & Friends' Summer Concert Series
Fox & Friends has announced its All-American Summer Concert Series, which begins Friday, May 24 with Flo Rida. The concerts happen Fridays through August....
22/05/2024
Grammys' Set For February 2 on CBS and Paramount Plus
The 67th Annual Grammys Awards air on CBS Sunday February 2, 2025. The event happens at Crypto.com Arena in Los Angeles. Paramount Plus will stream the Grammys ...
22/05/2024
Red Nose Day Turns 10 on NBC
NBC Celebrates Red Nose Day Thursday, May 23, marking ten years since the network debuted the fundraising event targeting child poverty. The network airs a one-...
22/05/2024
Fox Debuts Battleground' to Take Advantage of Election Season
Fox First Run is launching Battleground, which begins Tuesday with a weekly email newsletter, then a weekly 30-minute TV show on June 10, and finally a strip on...
22/05/2024
Trying' to Make A Standout Show About Adoption
Season four of Trying, a U.K. comedy about a married couple and their adopted children, debuts on Apple TV Plus May 22. Esther Smith plays Nikki and Rafe Spall ...
22/05/2024
Walter Cade Gets Expanded Role Leading Ad Sales for NBCU Local Chicago
Walter Cade, senior VP of sales for NBCUniversal Local in Chicago, has been given an expanded role, the company said....
22/05/2024
RFD-TV Founder Patrick Gottsch Dies at 70 Years Old
Patrick Gottsch, who launched RFD-TV and The Cowboy Channel died suddenly Saturday at age 70 in the Fort Worth Stockyards....
22/05/2024
The industry is at a tipping point': World Skills Caf to address media's skills gap
Carrie Wootten talks to TVBEurope about a new initiative aiming to understand wh...
22/05/2024
Report: Media businesses facing HMRC R&D tax relief challenges
Research suggests media businesses are struggling to make successful claims for research and development tax reliefs By Matthew Corrigan Published: May 22, 2...
22/05/2024
GRAVITY MEDIA AUSTRALIA TO DELIVER CRANKWORX CAIRNS FOR R...
Gravity Media, a leading global provider of complex live creative production and media services, today confirmed details for the global coverage of this year...
22/05/2024
Pebble shows the stable future of playout automation at C...
Pebble, the leading automation, content management and integrated channel specialist, will demonstrate Automation 2.0, the new generation of its proven software...
22/05/2024
beIN MEDIA GROUP to launch first targeted TV advertising...
Leading video software company, Synamedia, today announced that beIN MEDIA GROUP ( beIN'), one of the foremost global sports and entertainment broadcasters,...
22/05/2024
Vizrt introduces smart video crop tool to streamline spor...
Vizrt, the leader in real-time graphics and live production solutions for content creators, announces a first for sports analysis. The latest software release...
22/05/2024
TAG to Demonstrate End to End Monitoring Probing and Vis...
TAG Video Systems, the leader in software-based IP end-to-end workflow monitoring, deep probing, and real-time visualization, will be demonstrating its Realtime...
22/05/2024
Trusted Partner Network Announces CANAL Plus Group Has Jo...
Trusted Partner Network (TPN), the leading industry content security initiative, announced today that CANAL Group, the leading French audiovisual media company...
22/05/2024
Sony Music Equips Its New 5020 Studio Madrid with PMC Mon...
Following an intensive five-month building project, Sony Music has officially opened its new 5020 Studio Madrid, a four-studio recording complex and creative ce...
22/05/2024
Joshua Blair and Nick Watson To Deliver Seminars at Prism...
Producer and engineer Joshua Blair and mastering engineer Nick Watson will be sharing their music industry knowledge and expertise at Prism Sound's 8 Hours ...
22/05/2024
Skandha launches powerful AI-based proof-of-delivery Ad v...
Skandha Media Services, a leader in scalable playout services that leverage cloud technology, automation, AI, and machine learning, has launched Evince, a uniqu...
22/05/2024
The Media Production and Technology Show Celebrates Recor...
After two buzzing days of inspiration, learning and an abundance of networking, the biggest and best The Media Production & Technology Show (MPTS) yet attracted...
22/05/2024
Nilesat Chooses PlayBox Neo Solutions for Large-Scale Ser...
PlayBox Neo announces an expansion of the broadcast channel management and playout infrastructure at the Cairo headquarters of Nilesat, one of the largest telec...
22/05/2024
PHABRIX to show Test and Measurement range on Leader Elec...
PHABRIX, a Leader Electronics Corporation brand, has announced that it is to exhibit a comprehensive selection of its T&M instruments on the Leader stand at Bro...
22/05/2024
The Academy of Lower Thirds Earns 2024 Chyron Designer of...
Chyron today announced that The Academy of Lower Thirds (AcademyL3) has earned the 2024 Chyron Designer of the Year Award for the Americas. The award recognizes...