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Meredith Corporation (MDP)

  • Wed, Oct. 14, 6:18 PM
    | Wed, Oct. 14, 6:18 PM | 3 Comments
  • Wed, Oct. 7, 10:50 AM
    | Wed, Oct. 7, 10:50 AM | Comment!
  • Mon, Oct. 5, 5:01 PM
    | Mon, Oct. 5, 5:01 PM | Comment!
  • Thu, Oct. 1, 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)
    | Thu, Oct. 1, 2:52 PM | Comment!
  • Tue, Sep. 29, 11:18 AM
    • As Media General (MEG +1.2%) sorts out its position in the middle of an M&A scrum -- with its $2.4B deal to buy Meredith Corp. (MDP -1%) in place, and receiving a hostile $4.1B offer from Nexstar (NXST +4.3%) for its company -- Starboard Value has sent a letter saying it would vote against the Meredith deal.
    • "Even if the transaction made strategic sense, the valuation does not seem to make financial sense," Starboard writes, noting Media General is paying an implied 12 times average forward two-year EBITDA for Meredith's broadcast business, a "significant premium to where Media General currently trades."
    • Starboard Value owns about 4.5% of Media General. It says it reviewed "with great interest" the Nexstar offer, which it believes "highly strategic."
    • The question is which way Media General will go, if it already spurned Nexstar interest privately and with the market and major shareholders weighing in seemingly in favor of a higher-value offer.
    • "Media General shareholders are likely to push our board and management hard to consider all alternatives including Nexstar’s compelling bid," says SA contributor Chris DeMuth Jr., founder of Rangeley Capital.
    | Tue, Sep. 29, 11:18 AM | Comment!
  • Mon, Sep. 28, 11:11 AM
    • Shares in Meredith Corp. (NYSE:MDP) -- in an existing deal to be bought by Media General (MEG +24.7%) -- have tumbled 7.3%, to lower than their pre-deal pricing, amid Nexstar's (NXST +2.5%) intervening bid for Media General.
    • Media General acknowledged receiving the proposal from Nexstar and says that its board continues to recommend its transaction with Meredith. It will review the new offer "consistent with its fiduciary duties."
    • Shares of Meredith were at $45.94 when the Media General tie-up was proposed Sept. 8 and they rose to $50.47; they're trading today at $42.66. They hit a 52-week low of $39.40 a month ago, on Aug. 24.
    • Previously: Media General up 22.3% after Nexstar's $4.1B bid (Sep. 28 2015)
    • Previously: Benchmark: No winners so far in Meredith/Media General tie-up (Sep. 14 2015)
    | Mon, Sep. 28, 11:11 AM | Comment!
  • Mon, Sep. 14, 7:55 PM
    • If you're looking for the happy shareholders in the $2.4B merger of Meredith Corp. (MDP -2.6%) and Media General (MEG -2.4%), you may need to look a while longer, Benchmark Capital notes.
    • The firm hosted a media-heavy conference at which many attendees wanted to discuss the merger, which isn't a sure thing. Media General shareholders aren't happy about the price tag their company's paying and the deals it might crowd out; Meredith holders see a "modest" premium and lament a potential deal with Time Warner Publishing where synergies might have meant a $60/share consolidated value.
    • Meredith closed today at $48.15 vs. the deal price of $51.53, which was a 12% premium to the Sept. 4 closing price.
    • Benchmark thinks the deal is likely to close eventually as positives are “getting lost in the noise, including retrans synergies and a significant boost to Media General’s digital monetization strategy along with a consolidated 25% FCF yield." It holds Buy ratings on both stocks.
    • Previously: Urge to merge may be necessity for TV broadcasters (Sep. 08 2015)
    • Previously: Meredith jumps 9.5%, Media General slips 6.3% in reaction to $2.4B tie-up (Sep. 08 2015)
    | Mon, Sep. 14, 7:55 PM | Comment!
  • Tue, Sep. 8, 3:43 PM
    • Meredith Corp. (NYSE:MDP) is up 9.5% -- and Media General (NYSE:MEG) has now dropped 6.3% -- after today's news that Meredith would sell to Media General for $2.4B to create a local-broadcast giant.
    • The new company, to be called Meredith Media General, will be led by Meredith's CEO Steve Lacy, who'll serve as CEO and president. A 12-member board will hold eight Media General appointees and four from Meredith, with Media General chairman J. Stewart Bryan III as chairman.
    • The combination takes place just as a key season heats up: the 2016 presidential race, which means a windfall of political advertising for local broadcasters.
    • The two stocks' movement today could reflect the fact that Meredith shareholders are likely to benefit more from the deal, as Media General's pre-merger station portfolio will draw political ad revenue heavily from battleground states including Florida, Ohio, North Carolina and Iowa.
    • Meredith owns 16 stations (and operates a 17th), focused generally on fast-growing markets, including Portland, Ore.; Atlanta; Phoenix; and St. Louis. Media General owns 71 stations across 48 markets, and would end up with three in Portland after adding Meredith's two.
    | Tue, Sep. 8, 3:43 PM | Comment!
  • Tue, Sep. 8, 9:14 AM
    | Tue, Sep. 8, 9:14 AM | 3 Comments
  • Thu, Jun. 25, 8:42 PM
    • Shares in Martha Stewart Living Omnimedia (NYSE:MSO) rose 3.9% today, and another 0.5% after hours, as the prospect of more (maybe several more) bidders for the company emerged today.
    • Sequential Brands (SQBG -1.5%) on Monday said it had agreed to acquire MSO for $6.15 a share (about $353M), in a done deal. But The New York Post reported that bidding has reopened for "at least five prospective bidders" as Sequential's CEO Yehuda Shmidman was said to have leaked deal details early.
    • That meant having to include a 30-day "go-shop" provision -- and now bidders may include Meredith (NYSE:MDP), which already has licensing for the Martha Stewart magazines; licensing group Iconix (NASDAQ:ICON); Global Brands; and Authentic Brands.
    • Sequential's board is reportedly "very disappointed that this occurred and wants to understand how this happened."
    • Martha Stewart shares were last quoted at $6.43 after hours, a 4.6% premium to Sequential's offer.
    | Thu, Jun. 25, 8:42 PM | 2 Comments
  • Thu, Apr. 23, 9:43 AM
    • Meredith Corp. (NYSE:MDP) is up 2.1% as it posted record revenues in fiscal Q3 that still missed expectations slightly. Earnings per share beat expectations though EBITDA came in at $61.7M, below an expected $69.4M.
    • Revenue breakout: Advertising, $206M (up 13.1%); Circulation, $96M (flat); Other, $96.1M (up 7.8%).
    • By operating group: National Media, $275.3M (up 2%), driven by integration of Shape brand and the Martha Stewart properties; Local Media, $122.9M (up 25.7%), driven by added TV stations in St. Louis, Phoenix, Mobile-Pensacola and Springfield, Mass.
    • Digital ad revenues grew more than 55%. Traffic to digital/mobile sites is now about 70M unique visitors/month.
    • Conference call at 11 a.m. ET.
    • Press release
    | Thu, Apr. 23, 9:43 AM | Comment!
  • Oct. 15, 2014, 5:54 PM
    • Magazine publisher/TV network owner Meredith (NYSE:MDP) will "assume ad sales, circulation, and production of Martha Stewart Living (NYSE:MSO) and Martha Stewart Weddings magazines," under a 10-year deal.
    • Meredith will also handle sales/marketing for MSO's sites and video library. However, MSO's editorial team will "continue to create all content for print and digital properties."
    • The companies assert the deal will enable Meredith to "market [Martha Stewart's] magazines and digital assets alongside Meredith's own leading brands." MSO expects the agreement will increase its op. income "by as much as $10-$15 million annually." A $2M-$3M Q4 restructuring charge will be recorded.
    | Oct. 15, 2014, 5:54 PM | Comment!
  • Jun. 25, 2014, 12:11 PM
    • Sinclair Broadcast (SBGI +14.1%), Media General (MEG +10.4%), E.W. Scripps (SSP +7.9%), Gray Television (GTN +7.5%), Meredith (MDP +4.3%), Gannett (GCI +3.8%), and Nextar (NXST +15.6%) are taking off after the Supreme Court ruled (by a 6-3 vote) Aereo's TV streaming service is illegal.
    • National broadcast network owners are generally showing more moderate gains.
    | Jun. 25, 2014, 12:11 PM | 1 Comment
  • Jan. 4, 2012, 1:28 PM
    Meredith Corp. (MDP -2%) deepens its foray into the women-focused media space by acquiring FamilyFun magazine and related assets from Walt Disney Co.'s (DIS) publishing arm for an undisclosed sum. The magazine, which has an audience of about 6M, targets mothers with children ages 3 to 12 and focuses on family activities, such as cooking, crafts and travel.
    | Jan. 4, 2012, 1:28 PM | Comment!
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.