Meredith Corporation says it understands Media General wants to also speak with Nexstar about a merger, but still thinks its proposal is better.
The company said it remains confident that the combination of Meredith and Media General will generate “superior shareholder value — over both the near- and long-term — as compared to a potential Nexstar transaction.”
“Enhancing Meredith shareholder value will remain our top priority as we move forward in this merger process,” said Meredith Chairman/CEO Stephen Lacy.
He stressed the binding agreement to merge with Media General remains in place with “fully-committed financing of $2.8B.” The companies are making progress on obtaining regulatory approval and they’ve found additional cost-saving measures as a result of the combo.
A Media General-Meredith deal would create a new company that combines Media General’s catalog of local TV stations with Meredith’s magazine content. The result would be $3 billion in revenues, over $920 million of EBITDA, and at least $1 billion in pro-forma cumulative free cash flow in the first two calendar years post-closing, according to Meredith.
