Nexstar Makes $4.1 Billion Offer for Media General, Criticizes Meredith Deal

Media General should allow itself to be bought by Nexstar for $4.1 billion instead of pursuing the “ill-conceived and value destructive” buy of Meredith, Nexstar CEO Perry Sook said in a letter to Media General Chairman Stewart Bryan and CEO Vincent Sadusky Monday. Media General rejected a previous offer from Nexstar two weeks before announcing the Meredith transaction, which is “value destructive,” Sook said. “We believe our proposal is a superior transaction in all respects to your proposed acquisition of Meredith. Your shareholders should be aware of the compelling value represented by our proposal, which would be lost if the Meredith-Media General transaction is consummated.” Media General acknowledged receipt of the offer with its own release. The Media General board “will carefully review and consider the proposal,” the release said. “The Board of Directors of Media General continues to recommend the proposed transaction with Meredith.” Nexstar/Media General would have 162 stations in 99 markets, reach 39 percent of U.S. households, and be the No. 2 owner of major network affiliates, Nexstar said in a release. The Nexstar deal would require “similar” divestitures to the six proposed in the Meredith deal, but in smaller markets and with less accompanying revenue loss, Nexstar said. Shareholders and analysts will prefer the Nexstar deal, Sook said. “We anticipate being able to prepare and execute a definitive merger agreement within 20 days." Media General stock closed up 22 percent Monday at $13.64.