Nexstar Comes to Terms on Media General Deal

Nexstar Broadcasting Group said it has negotiated terms to acquire Media General.

The transaction would pay $10.55 a share, plus 0.1249 of a Nexstar share for each Media General share.

Nexstar said it will sign a definitive agreement to acquire Media General after Media General terminates its transaction with Meredith Corp. Nexstar said the form of merger agreement hasnt been fully negotiated.

The Nexstar-Media General-Meredith triangle has played out over the last few months and is part of a larger story of consolidation in the broadcast business.

Media General agreed to a deal with Meredith, but Media General shareholders werent impressed that Meredith had print assets in its portfolio in addition to its TV stations and digital properties.

Nexstar swept in with a richer offer but at first it was rejected by Media General.

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.

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 intended to divest TV stations necessary to get FCC approval for the deal.

LINK:	http://www.broadcastingcable.com/news/currency/nexstar-comes-terms-med...
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