Media General (MEG) - NYSE
  • 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
  • Mon, Jan. 4, 6:05 PM
    • Media General (MEG -1.7%) has grabbed an ABC affiliation for its Tri-Cities station, operating out of Johnson City, Tenn.
    • The company already operates 12 other ABC affiliates. ABC had affiliated with WKPT in that market previously, but as of Feb. 1 it will ally with Media General.
    • In the Tri-Cities market, Media General also owns and operates WJHL as a CBS affiliate.
    | Mon, Jan. 4, 6:05 PM
  • 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. 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. 10, 2015, 11:01 AM
    • The NY Post reports Nexstar Broadcasting (NXST +3.3%) is willing to take its battle for Media General (MEG +3.5%) to the boardroom if its overtures continue to be spurned. The Dec. 28 start of Media General's board nominations are reportedly being eyed.
    • A tangled web: The Post adds Media General "has been delaying" Nexstar on the hope Meredith, which Media General has struck a $2.4B deal to acquire, would offer to buy Nexstar. However, Meredith has reportedly been struggling to put a deal together.
    • Shortly after the WSJ reported as much, Nexstar announced yesterday Media General had rejected a $16.31/share cash/stock bid and made an $18.61/share counteroffer. Nexstar added it's also offering Media General shareholders the right to proceeds from a pending spectrum auction that could yield ~$1.50/share.
    • Media General responded with a statement asserting Nexstar's proposal still "materially undervalues" the company, and that it's not clear if Nexstar's current bid is its best and final offer. Activist Starboard Value has been pushing Media General to talk with Nexstar.
    | Dec. 10, 2015, 11:01 AM
  • Dec. 8, 2015, 7:10 PM
    • The WSJ reports Media General (NYSE:MEG) has rejected a revised $16.30/share bid from Nexstar Broadcasting (NASDAQ:NXST), and made an ~$18.60/share counteroffer. Talks are said to have hit an impasse.
    • Nexstar made a (rejected) $14.50/share bid in September. Its most recent offer reportedly featured both more cash and stock than the prior bid.
    • MEG +0.7% after hours to $14.68.
    • Prior MEG/NXST coverage
    | Dec. 8, 2015, 7:10 PM
  • Nov. 16, 2015, 9:41 AM
    • Media General (NYSE:MEG) says its board unanimously agreed to negotiate with Nexstar Broadcasting (NASDAQ:NXST) over its buyout bid (and unanimously rejected the bid as "significantly" undervalued).
    • The company says that as constructed, the proposal discounts Media General's standalone growth prospects, ignores value embedded in excess spectrum that could sell in the incentive auction, and doesn't reflect an "equitable" share of buyout synergies.
    • It will talk over the deal privately with Nexstar. The board had come in for some flak from investors after Nexstar went public with a $4.1B bid it had said it pursued in months of (fruitless) private discussions, preferring instead to pursue Media General's own $2.4B bid for Meredith Corp. (NYSE:MDP).
    • Nexstar's bid is for $14.50/share; Media General is trading at $15.52.
    • Previously: Starboard Value writes of frustration at speed of Media General/Nexstar talks (Nov. 10 2015)
    • Previously: Media General reaches deal with Meredith to exchange info with Nexstar (Oct. 14 2015)
    | Nov. 16, 2015, 9:41 AM
  • Nov. 10, 2015, 9:49 AM
    • Starboard Value -- the activist investor which said it would vote against Media General's (NYSE:MEG) $2.4B deal to buy Meredith Corp. (NYSE:MDP) -- has sent a new letter to Media General expressing "surprise and frustration" over the pace of engaging with Nexstar Broadcasting (NASDAQ:NXST) over its hostile bid for Media General.
    • The firm says it continues to believe in the "compelling strategic and economic benefits" of a Media General/Nexstar tie-up, but wonders about the delay in determining that that lead to a superior offer.
    • It's been close to a month since a Meredith waiver allowing some mutual due diligence, Starboard writes; "Why would Media General not want to explore how much Nexstar may be willing to offer?"
    • Nexstar's $4.1B hostile offer led a number of investors and observers to question Media General's deal for Meredith over whether it was unfavorable to tying up with Nexstar instead.
    • Previously: Media General reaches deal with Meredith to exchange info with Nexstar (Oct. 14 2015)
    • Previously: Media General, Nexstar higher amid report that Meredith deal's dead (Oct. 07 2015)
    • Previously: Major holder Starboard Value weighs in against Media General/Meredith (Sep. 29 2015)
    | Nov. 10, 2015, 9:49 AM
  • Nov. 5, 2015, 7:34 AM
    • Media General (NYSE:MEG): Q3 EPS of -$0.38 may not be comparable to consensus of $0.01.
    • Revenue of $322M (+101.0% Y/Y) misses by $1.13M.
    | Nov. 5, 2015, 7:34 AM
  • Nov. 4, 2015, 5:30 PM
  • Oct. 20, 2015, 8:04 PM
    • After a lot of talk about the evolution of TV upfronts, a swath of hyped premieres and political debates and the return of football, TV ad spending for Q3 was flat Y/Y.
    • Cable spending rose 1% for the quarter, but broadcast ads fell 3%, according to Standard Media Index. Local-focused spot spending was up 2%.
    • Syndication spending fell 6%; local cable, MSO and satellite TV slipped 1%.
    • There were few positive signs, but the scatter market rose 6% for the quarter, and Scripps Networks (NYSE:SNI) and AMC (NASDAQ:AMCX) showed ad spending growth, as did broadcasters Telemundo and ABC (NYSE:DIS).
    • Local broadcast stocks: SBGI, MEG, SNI, GTN, MDP, TGNA, NXST
    • Other network stocks: AMCX, DIS, CMCSA, CBS, FOX, FOXA, VIA, VIAB, STRZA, DISCA
    | Oct. 20, 2015, 8:04 PM | 1 Comment
  • 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. 6, 2015, 2:44 PM
    | Oct. 6, 2015, 2:44 PM
Company Description
Media General, Inc. engages in the provision of broadcast television and digital media services. It provides of news, information and entertainment across broadcast television, digital media and mobile platforms, serving consumers and advertisers in strong local markets. Its broadcast operations... More
Sector: Services
Industry: Publishing - Newspapers
Country: United States