×

Nexstar Makes Surprise Bid For Media General

Nexstar Broadcasting has made a bid for TV-station owner Media General, in a surprise maneuver aimed at breaking up Media General’s effort to acquire Meredith Corp.

Nexstar sent a letter to Media General’s board of directors Monday morning offering $14.50 a share for the company. The offer includes $10.50 in cash and 0.0898 Nexstar shares for each Media General share, according to the letter.

“The transaction we are proposing would be a transformational event for both Nexstar and Media General shareholders and would deliver superior, immediate and long-term value to Media General’s shareholders compared with Media General’s proposed acquisition of Meredith,” said Nexstar Chairman and Chief Executive Perry Sook in a statement.

Earlier in September, Media General agreed to buy Meredith for about $2.4 billion in cash and stock. The deal must be approved by shareholders of both companies and would be valued at about $3.1 billion including debt.

The move reflects a growing wave of consolidation among owners of TV stations. In 2013, Gannett bought up TV stations owned by Belo Corp., while Tribune put into place a $2.7 billion acquisition of Local TV Holdings. Many of the companies are jettisoning newspapers in order to focus more strongly on broadcast stations, which are thought to have strong ties to local markets while able to enjoy revenues from distribution via cable and broadband.

Nexstar owns and operates 107 television stations in 58 markets, giving it reach into around 18% of U.S.  households. That number could grow. If some recently announced transactions are completed, Nexstasr would own and operate 114 television stations. Nexstar recently unveiled an agreement to purchase four North Dakota television stations for $44 million.

Media General sold a large part of its newspaper holdings to Warren Buffett’s Berkshire Hathaway in 2012 and last year announced a deal to buy broadcaster LIN Media for $1.6 billion. The Meredith deal as sketched out by the suitors would create a combined company with 88 stations in 54 markets that could reach about 30% of U.S. households.

Popular on Variety

More TV

  • TV News Roundup: Netflix Drops Trailer

    TV News Roundup: Netflix Drops Trailer for Ryan Murphy's 'The Politician' (Watch)

    In today’s TV news roundup, Netflix has drops the first trailer for “The Politician,” and “Killing Eve” adds two to its cast for season 3.  CASTING Harriet Walter and Danny Sapani, both alums of “The Crown,” are set to join the cast of “Killing Eve” for its third season. British writer Suzanne Heathcote, whose past credits include [...]

  • Lady Gaga

    Variety Earns 14 Folio: Eddie & Ozzie Award Nominations

    Variety has received 14 Folio: Eddie & Ozzie award nominations for its coverage of the entertainment industry over the past year. The awards gala, which will take place at The Hilton Midtown in New York City on Oct. 30, celebrates publications that have demonstrated impressive investigative journalism, in addition to thoughtful digital and print design. [...]

  • Disneyland

    Disney Shares Slip Amid Reported Whistleblower Allegations of Inflated Revenue

    Sandra Kuba, a former senior financial analyst for Disney’s revenue operations unit, says she has filed a series of whistleblower tips with the U.S. Securities and Exchange Commission, alleging that the entertainment conglomerate repeatedly and systematically overstated its revenue for years, according to a MarketWatch report, by as much as $6 billion in a single [...]

  • Bob Bakish Joe Ianniello

    ViacomCBS Sets Board Members; Bob Bakish, Joe Ianniello New Deals Disclosed

    ViacomCBS has unveiled the 13 members of its board of directors and details of new employment contracts for president-CEO Bob Bakish and CBS chairman-CEO Joe Ianniello. The disclosure came Monday in a filing with the Securities and Exchange Commission, six days after Viacom and CBS at long last set an all-stock merger agreement valued at [...]

  • Carrie Underwood, left, and Reba McEntire

    CMAs Make Hosting Change: Brad Paisley Exits, Dolly Parton and Reba McEntire Are In

    The CMA Awards have had the most consistent hosting situation of any music awards show in television, but 11 years after installing Brad Paisley and Carrie Underwood as the reliable faces of the telecast, even ABC and the Country Music Association have decided it’s time for a switch. Come Nov. 13, Underwood will return for [...]

  • Ava Max iHeartRadio Wango Tango, Portraits,

    Megan Thee Stallion, CNCO, Ava Max to Perform at VMAs Pre-show

    CNCO, Megan Thee Stallion and “Sweet but Psycho” singer Ava Max (pictured) have been added to the performer lineup at this year’s MTV Video Music Awards. The three will take the stage during the VMAs’ red carpet pre-show, hosted by Terrence J and Nessa. Zara Larsson will join the two hosts as a special correspondent. [...]

More From Our Brands

Access exclusive content