Nexstar Broadcasting Makes Bid to Acquire Media General, Dissuades MG from

According to the Nexstar letter, the combination of Nexstar and Media General would create an even larger entity with 152 television stations across 99 markets, reaching 39 percent of U.S. TV households. It represents a premium of 30% to Media General’s closing stock price on September 25.

Under the proposal, Nexstar would acquire all of Media General’s outstanding common stock for $14.50 per share in cash and stock.

“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”, Sook said.

After being rebuffed in previous efforts, Irving, Texas-based Nexstar Broadcasting Group Inc. has made an unsolicited offer to acquire Richmond-based Media General Inc. for $1.85 billion. The deal must be approved by shareholders of both companies and would be valued at about $3.1 billion including debt. Media General recently announced it was buying Meredith for $2.4 Billion.

Nexstar has for several months attempted to open negotiations with Media General, according to a letter from Nexstar Chairman and CEO Perry Sook. 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.

A Media General representative did not immediately return a call seeking comment.

Mr. Sook, who is also Nexstar’s founder, was a pioneer of the “retransmission consent” revenue stream for local TV stations, the payments cable and satellite operators make to carry their signals.