Meredith Offers New Merger Proposal to Media General

Updated: Calls it a 'merger of equals'

Related: Four Months Later, Seemingly Inevitable Nexstar-Media General Marriage Closer to Complete

Following Nexstar’s announcement that it has negotiated terms to acquire Media General, Meredith countered with an amended proposal to merge with Media General.

The amended deal, which it called a “merger of equals,” would pay more than $20 per share, including $3.90 per share in cash at the close of the deal (totaling $510 million) and one share of Meredith Media General for each share of Media General representing a pro-forma equity value of $14.94 per share.

Meredith also threw in cash from net proceeds from sales of spectrum in the upcoming incentive auction. Meredith claimed spectrum was valued at up to $4.29 per share after taxes.

Meredith Media General would pay an annual dividend starting at $0.68 per share.

Media General shareholders would own 50.2% of the merged companies, while Meredith shareholders would receive 49.8%.

"We're confident that the combination of Meredith and Media General will generate superior value over both the near- and long-term, particularly when compared to the unsolicited offer Nexstar Broadcasting Group has made for Media General," said Meredith chairman and CEO Stephen M. Lacy. "Given the compelling and superior value inherent in this proposal, we ask that the Media General Board of Directors re-enter serious negotiations around the Merger of Equals structure and its merits."