Media General Rejects Nexstar Bid, But Will Negotiate

Media General, which operates 71 television stations in all but two states, has rejected a $4.1 billion bid from the Nexstar Broadcasting Group, saying the unsolicited offer undervalues the company.

Yet, according to the NY Times,  Media General also said on Monday that it had agreed to negotiate with Nexstar. The development comes after the board consulted its merger agreement with the Meredith Corporation — the media conglomerate that Media General agreed to acquire for $2.4 billion in September — enabling the company to explore a takeover.

The current proposal, Media General said, ignores the value in the company’s excess spectrum and does not reflect the synergies that the combined company could achieve.

Nexstar said on Sept. 28 that it submitted a proposal to the Media General board to acquire the company for $14.50 in cash and stock. The offer came after Nexstar’s initial bid in August, which Media General rejected; two weeks later, Media General announced an agreement to acquire Meredith.