Meredith Corporation
 (MDP)

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  • Wed, Feb. 3, 10:42 AM
    • Meredith (MDP -1.4%) chief Steve Lacy said on the company's earnings call last week that it might look to acquisitions after being iced out of a merger with Media General, and that execs would present some proposals to the board over the weekend.
    • The New York Post has reported that Lacy presented five acquisitions to the board, but none of them in the print field -- "Two are in television, three are in digital" -- and in talking to Bloomberg Television today, he squelched speculation that the company would pursue Time Inc. (TIME -2.6%).
    • Meredith is pursuing millennial women, a demographic Time is also courting with recent deals, but asked whether that was on the table, Lacy flatly said: "No."
    • With low leverage and an effective borrowing rate of about 2.5%, Lacy says "We have a lot of dry powder ... Finding good, accretive deals that add value for our shareholders is really where we're focusing our attention."
    | Wed, Feb. 3, 10:42 AM
  • Wed, Jan. 27, 6:08 PM
    • Of the media companies in a three-way M&A triangle, Meredith Corp. (NYSE:MDP) fared the best today, moving up 5.1%, with no shortage of catalysts as it scored a $60M breakup fee along with first-look rights at some Media General (NYSE:MEG) assets, and posted an earnings beat in its Q2 results.
    • Nexstar (NASDAQ:NXST) -- which will now buy Media General for $4.6B -- closed down 4.6%.
    • Asked about other M&A possibilities for Meredith on its earnings call, CEO Steve Lacy hinted at staying tuned. "The television M&A world ... is going to be a little quiet till we get through the [spectrum] auction."
    • "I love our position, with very, very low leverage and really cheap debt," he noted. In addition to that, though, "we have some digital assets that we're interested in. One of them interestingly enough would be beneficial for our Local Media and our National Media business and we're going to be presenting a couple of them to our board this coming weekend."
    • The dividend is "very attractive" yielding almost 5%, and buybacks are on the horizon as well, says CFO Joe Ceryanec: "We have not been able to buy our shares back while we've been under the merger agreement and now that's behind us."
    • Previously: Meredith up 3.2%; profits beat as nonpolitical ad revenues grow (Jan. 27 2016)
    • Previously: Meredith clears way; Nexstar to buy Media General in $4.6B deal (Jan. 27 2016)
    | Wed, Jan. 27, 6:08 PM
  • Wed, Jan. 27, 9:39 AM
    • Along with the news that it was getting out of its merger deal with Media General, Meredith (NYSE:MDP) posted fiscal Q2 results where profits fell but beat expectations as revenues grew 2%.
    • Shares are up 3.2% coming out of the market open.
    • Excluding transaction expenses tied to the Media General deal, EPS fell to $0.80 from a prior-year $1.00.
    • Political ad revenues were $29M less in the off year ($0.39/share less), but nonpolitical ads in its National Media Group grew 18% (revenues up 10%), boosting group profits nearly 30%. Local Media Group nonpolitical ad revenues grew near 10% to a record $104M.
    • Revenue breakout: Advertising, $241.6M (flat); Circulation, $66.4M (up 11.6%); All other, $98.5M (up 0.5%).
    • Conference call to come at 11 a.m. ET.
    • Press Release
    | Wed, Jan. 27, 9:39 AM
  • Wed, Jan. 27, 9:03 AM
    • As expected, Meredith Corp. (NYSE:MDP) has agreed to terminate its agreement to be bought by Media General (NYSE:MEG), clearing the way for a definitive deal for Nexstar Broadcasting (NASDAQ:NXST) to buy Media General at a higher price.
    • Nexstar has an agreement to pay $4.6B in cash and stock to create the Nexstar Media Group. Media General is up 2.1% premarket.
    • Meredith will receive $60M in cash and the right to negotiate for some Media General assets as part of its breakup deal.
    • Nexstar will acquire all shares of Media General for $10.55/share in cash and 0.1249/share of Nexstar Class A common stock for each MEG share, along with a contingent value right tied to any proceeds Media General sees from the FCC broadcast incentive auction.
    • "While we still believe in the strategic and financial benefits a merger with Media General (MEG) would have created, we are pleased with the financial benefits of the termination agreement and the shareholder value created," says Meredith chief Stephen Lacy.
    • Previously: Bloomberg: Meredith set to allow Nexstar-Media General deal (Jan. 26 2016)
    | Wed, Jan. 27, 9:03 AM | 4 Comments
  • Tue, Jan. 26, 12:02 PM
    • Negotiations between Meredith (MDP +1.4%) and Media General (MEG +2.7%) are moving along, Bloomberg reports, with Meredith close to being ready to walk away from their merger deal and allow Nexstar (NXST +2.7%) to buy Media General.
    • Meredith is nearing a deal for a $60M breakup fee with no extra money, with an announcement that could come tomorrow along with Meredith's earnings.
    • Nexstar has offered to buy Media General for about $2.3B, but that deal can't move ahead until Meredith releases Media General from its own deal to buy Meredith for $2.4B.
    | Tue, Jan. 26, 12:02 PM
  • Thu, Jan. 7, 9:53 AM
    • With Media General (MEG +3.4%) and Nexstar (NXST -4.5%) apparently coming to terms of a Nexstar buyout of MEG for around $17.66/share, Meredith Corp. (MDP -1.6%) -- which had a merger agreement in place with Media General -- has proposed a merger amendment to keep its deal alive.
    • Meredith says it's offering a "merger of equals" with more than $20/share in near-term value to MEG shareholders, including $3.90/share in cash (about $510M total), a share of "Meredith Media General" for each MEG share (implied pro forma equity value of $14.94/share based on a 9x EBITDA multiple) and a CVR for the value of Media General spectrum in the FCC's incentive auction.
    • The company also says that "Meredith Media General" would pay an annual dividend starting at $0.68/share. Media General shareholders would have 50.2% of the new company and Meredith shareholders would get $14.95/share in cash (total proceeds of about $685M).
    • Meredith has canceled its planned presentation today at the Citi Internet, Media & Telecommunications Conference.
    • So far, Meredith has been unwilling to cancel the existing merger agreement -- a necessary precondition to Nexstar buying Media General. That unwillingness is prompting Media General to call a shareholder meeting to vote on the Meredith deal as soon as possible.
    • Previously: NXST -5.8%, MEG +2.4% as Media General says it's reached $17.66/share terms (Jan. 07 2016)
    | Thu, Jan. 7, 9:53 AM | 1 Comment
  • Thu, Jan. 7, 9:40 AM
    • Media General (NYSE:MEG) says it's completed negotiating terms for a takeover by Nexstar Broadcasting (NASDAQ:NXST) that include cash, stock and contingent value rights that would come to $17.66/share before the CVR.
    • MEG is up so far amid a sea of red, +2.4%. NXST is 5.8% lower.
    • Media General says the terms include $10.55/share in cash, along with 0.1249 of a share of Nexstar class A common stock per MEG share. The CVR entitles MEG shareholders for net cash tied to the sale of the company's spectrum in the March 29 broadcast incentive spectrum auction (adjustable for Nexstar's proceeds).
    • Media General believes its spectrum assets could be worth up to $4.29/share after taxes. Overall, the deal values MEG at 10.7x 2014-2015 average annual adjusted EBITDA.
    • To go through, the company notes, its agreement to merge with Meredith Corp. (MDP -2.1%) would have to be terminated first, and it's still currently in effect. Nexstar says it's looking forward to signing a definitive deal with Media General after the Meredith deal is terminated.
    • "This would be a great deal for both MEG and NXST," says SA contributor Andrew Walker of Rangeley Capital. "MEG shareholders realize a full and fair value for their shares, while NXST should benefit from significant upside from the synergies in combining the two companies. The ball is now in Meredith’s court."
    • Previously: Bloomberg: Nexstar may make formal Media General offer today (Dec. 31 2015)
    • Previously: Media General, Nexstar up on reports of $17.50/share deal talks (Dec. 23 2015)
    | Thu, Jan. 7, 9:40 AM
  • Dec. 31, 2015, 9:27 AM
    • With the year winding up, Nexstar Broadcasting (NASDAQ:NXST) is set to put finishing touches on its offer to acquire Media General (NYSE:MEG) as soon as today, Bloomberg reports -- a move that will kick off a short window for a possible counterbid by Meredith Corp. (NYSE:MDP).
    • Media General had agreed to acquire Meredith for $2.4B in September before Nexstar (pressed on by prominent shareholders) pursued its own bid for Media General. And Media General rejected an initial bid of $16.31/share from Nexstar a couple of weeks ago.
    • Nexstar is now firming up a $2.2B offer (about $17.50/share) in cash (60%) and stock, and when it and Media General come to agreement, Meredith will get at least four business days to come around with an intent to match or raise the bid.
    • A Nexstar-Media General deal couldn't be completed until the existing Media General-Meredith deal is terminated either voluntarily or by a shareholder vote that is six weeks away.
    • Updated 10:15 a.m.: MEG is now up 3.6%; NXST is down 1.4% and MDP down 1.6%.
    • Previously: Media General, Nexstar up on reports of $17.50/share deal talks (Dec. 23 2015)
    • Previously: Meredith +3.4% as Gabelli upgrades; MEG, NXST also rising (Dec. 16 2015)
    | Dec. 31, 2015, 9:27 AM
  • Dec. 23, 2015, 2:31 PM
    • Talks may be unstuck between Nexstar Broadcasting (NASDAQ:NXST) and Media General (NYSE:MEG), as the two are discussing a deal in which Nexstar buys Media General for about $17.50/share, Reuters is reporting.
    • The discussions hit a stalemate earlier this month when Media General rejected an offer of about $16.31/share in cash and stock, and counter-offered $18.61/share.
    • MEG is up 3% to $15.97; NXST is up 3.1% to $57.74. Meanwhile, Meredith Corp. (NYSE:MDP), having already agreed to a $2.4B takeover by Media General, has dipped back into the red, -0.2%.
    • If completed, a $17.50/share deal for Media General would be a $2B deal creating the nation's No. 2 local TV broadcaster. Another source says that Meredith -- whose purchase will be canceled with a NXST/MEG deal -- will be able to respond to Nexstar's offer and is already talking with Media General about its options.
    | Dec. 23, 2015, 2:31 PM
  • Dec. 22, 2015, 6:08 PM
    • Meredith Corp. (MDP +1.9%) and Sequential Brands (SQBG +2.4%) have struck a new 10-year licensing deal for the media properties of Martha Stewart Living, which was acquired by Sequential earlier this month.
    • Meredith had an existing deal with Martha Stewart Living Omnimedia to take over running the media brands, including MarthaStewart.com and MarthaStewartWeddings.com. The new agreement ensures Meredith manages print, digital and video functions, as well as sales and marketing, circulation and production in the U.S. and Canada, with opportunities to expand globally.
    • The deal's not expected to have a material effect on Meredith's fiscal Q2; the company will add more details on that earnings call, set for Jan. 27.
    • Previously: Sequential Brands wraps buyout of Martha Stewart Living Omnimedia (Dec. 04 2015)
    | Dec. 22, 2015, 6:08 PM
  • Dec. 16, 2015, 10:49 AM
    • A linked trio of media stocks on the move today: Meredith Corp. (NYSE:MDP), the subject of a pursuit by Media General (NYSE:MEG), is up 3.4% while Media General is up 3%.
    • Nexstar (NASDAQ:NXST), which interrupted with its own hostile bid for Media General, is up 3.9%.
    • Gabelli has bumped Meredith to Hold after noting the stock has been resilient amid the burgeoning M&A drama between Media General and Nexstar.
    • Offers and counteroffers in Nexstar's bid for Media General have hinged on stock: Nexstar's offer of $11/share in cash and 0.1024 shares of NXST (about $16.31/share total) vs. Media General's counter of $11/share cash and 0.135 shares of NXST (about $18.61/share).
    • Meredith dipped yesterday, for which Gabelli's Barry Lucas blames "anticipation of either a hostile bid for Media General from Nexstar and/or an expectation that Meredith makes an outright bid for Media General above Nexstar’s last reported offer" -- two scenarios in which Meredith loses.
    • He's rating Hold to wait on further news and the firm has suggested an alternative: With Meredith having last call after a competing bid for Media General, Meredith could bid about $19/share ($10/share cash, 0.2 shares of MDP) for Media General.
    | Dec. 16, 2015, 10:49 AM | 1 Comment
  • Dec. 8, 2015, 1:03 PM
    • Meredith Corp. (MDP -2%) has reaffirmed its guidance for Q2 and for fiscal 2016.
    • The company reiterated it expects EPS of $0.75-$0.80 in Q2, and revenues up low single digits, both in line with consensus.
    • It's also forecasting EPS of $2.90-$3.25 for fiscal 2016, ending next summer, in line with consensus.
    • Its last declared dividend (of $0.4575; 4% forward yield) is payable coming up on Dec. 15.
    • Shares are down 16.1% YTD.
    | Dec. 8, 2015, 1:03 PM | 2 Comments
  • Oct. 14, 2015, 6:18 PM
    • Media General (MEG +0.9%) says it's reached a deal with Meredith (MDP -0.4%) -- with whom it has an existing $2.4B buyout agreement -- to share nonpublic info with Nexstar Broadcasting (NXST -1.5%), which has come in with its own bid for Media General.
    • With that arrangement set, Media General will pursue a confidentiality deal with Nexstar to start exchanging information.
    • Media General is continuing to stand by its Sept. 8 deal to buy Meredith, though after Nexstar's hostile offer for Media General on Sept. 28, major investors have weighed in in favor of taking Nexstar's offer. A media report last week suggested the Meredith buyout was essentially dead.
    • Since the Sept. 8 deal, Meredith stock has fallen 9.5%; Media General is up 9.3% since Nexstar's hostile offer.
    • Previously: Media General, Nexstar higher amid report that Meredith deal's dead (Oct. 07 2015)
    • Previously: Oppenheimer joins opponents of Media General/Meredith deal (Oct. 06 2015)
    • Previously: Wells Fargo favoring Nexstar hostile offer for Media General (Oct. 01 2015)
    | Oct. 14, 2015, 6:18 PM | 3 Comments
  • Oct. 7, 2015, 10:50 AM
    | Oct. 7, 2015, 10:50 AM
  • Oct. 5, 2015, 5:01 PM
    | Oct. 5, 2015, 5:01 PM
  • Oct. 1, 2015, 2:52 PM
    • Wells Fargo is adding its voice on the side of Nexstar Broadcasting's (NXST -2.5%) hostile $4.1B offer for Media General (MEG -0.1%), saying it's better for Media General's shareholders than the company's existing plan to acquire Meredith Corp. (MDP -2.4%).
    • After a merger, analyst Marci Ryvicker thinks NXST and MEG together have the potential to double, vs. about 21% upside in a MEG/MDP combination.
    • Ryvicker says she doesn't agree with shareholder worries that the existing deal is tilted toward Meredith's management and shareholders, but knows they're out there.
    • Earlier this week, activist investor Starboard Value said they intend to vote against a Meredith merger, favoring the deal with Nexstar.
    • Wells Fargo's Eric Katz thinks Meredith could be a buyer if there's no deal with Media General, looking for bolt-on acquisitions.
    • Previously: Major holder Starboard Value weighs in against Media General/Meredith (Sep. 29 2015)
    | Oct. 1, 2015, 2:52 PM
Company Description
Meredith Corp is a diversified media company focused on the home and family marketplace. The Company operates two business segments: local media and national media.