Nexstar Media Group acquired Media General, Inc. for approximately $4.6 billion, a transaction completed in January 2017, structured as combination (cash and stock, plus a contingent value right). The deal was a Merger.
Media General, Inc. operates in Local television broadcasting and digital media. Nexstar Broadcasting Group entered into a definitive merger agreement to acquire all outstanding shares of Media General, Inc. for $10.55 per share in cash plus 0.1249 of a share of Nexstar Class A stock per Media General share, with a contingent value right tied to proceeds from Media General's spectrum in the FCC Incentive Auction. The deal, which valued Media General at $17.14 per share (about a 54% premium), followed the termination of a proposed Meredith Corporation-Media General merger. Nexstar renamed itself Nexstar Media Group upon completion. The transaction closed January 17, 2017; Nexstar completed related divestitures of 13 stations for $548 million at closing.
The acquisition of Media General's broadcasting and digital media assets represent a transformational growth opportunity for Nexstar and is strategically and financially compelling. The transaction increases Nexstar's broadcast portfolio by approximately two thirds with very limited overlap with our existing properties, more than doubles our audience reach, provides entree to 15 new top-50 DMAs and offers synergies related to the increased scale of the combined company.
Advisory firms were not disclosed for this transaction.