Nexstar To Acquire Media General

After months tangled in a three-way merger drama, the Nexstar Broadcasting Group has agreed to acquire Media General for more than $2.1 billion.

The NY Times reports the deal was contingent on the Meredith Corporation bowing out from its own attempt to combine with Media General, which it agreed to do on Wednesday.

After several weeks of negotiations, Meredith finally agreed to accept a $60 million breakup fee to walk away. It may also get a first look at some of the divestitures that may be required from the Media General deal with Nexstar.

Meredith, which operates television stations and publishes magazines like Better Homes and Gardens, had agreed to merge with Media General in September, after Media General rebuffed a takeover offer by Nexstar. Nexstar sweetened its bid a few times to the point where it reached an agreement to acquire Media General.

Nexstar agreed to acquire all outstanding shares of Media General for $10.55 a share in cash and 0.1249 of a share of Nexstar common stock for each Media General share. Based on Tuesday’s closing stock price of Nexstar, the deal values Media General at about $16.69 a share.

The companies valued the deal at $4.6 billion.