Nexstar Seeks To Scuttle Media General-Meredith Deal

Nexstar Broadcasting Group, Inc. announced today a proposal to acquire Media General, Inc. (MEG) for $10.50 per share in cash and a fixed ratio of 0.0898 Nexstar shares per Media General share.

The proposal, currently valued at $14.50 per Media General share, was submitted today in a letter to the Media General Board. It represents a premium of 30% to Media General’s closing stock price on September 25.

Perry Sook, Chairman, President and CEO of Nexstar, said, “The 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.

“Our proposal provides a significant premium to Media General’s shareholders, including a cash component nearly equal to Media General’s current share price. Our proposal would also enable Nexstar and Media General 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, including substantial free cash flow per share, led by a proven broadcast and digital media management team. Nexstar is already growing rapidly as a result of our organic and M&A initiatives, but a combined Nexstar/Media General would be even better positioned for long-term success in a dynamic and consolidating market and certainly better positioned to deliver shareholder value than a combined Media General/Meredith.

“Given the compelling strategic and financial value of a combination, it is illogical that Media General’s Board has refused to engage with us and has instead pursued an ill-conceived and value-destructive acquisition of Meredith that would once again expose Media General shareholders to the risks of the low-margin publishing business. We believe our offer is compelling and provides a value-building path forward for both Media General and Nexstar shareholders. We look forward to engaging in dialog with the financial community regarding the superior merits of our proposed transaction.”