Nexstar Reaches Deal for Media General Buyout

Nexstar Broadcasting Group Inc. on Wednesday said had reached a deal for its takeover of Media General Inc. for $2.13 billion, ending a three-way merger standoff with rival deal-seeker Meredith Corp.

Nexstar will pay $10.55 in cash and 0.1249 of a Nexstar share, totaling $16.69, for each share of Media General, representing a 3.5% premium over Media General's closing price Tuesday. The deal represents a 50% premium over the closing share price of Media General on Sep. 25, the last trading day before Nexstar's public announcement it was interested in acquiring Media General. The agreement also includes a so-called contingent value right to additional money received from the upcoming spectrum auction by the Federal Communications Commission to buy back airwaves and repurpose them.

The deal was struck following the termination of the proposed merger transaction between broadcasters Meredith and Media General, awarding Meredith a $60 million termination fee. In addition, the companies said, Meredith will be able to negotiate for the purchase of certain broadcast and digital assets currently owned by Media General.

Earlier this month, Nexstar reiterated its commitment to buying Media General, but didn't raise the stakes even as Meredith refused to terminate its agreement with Media General. Any deal between Nexstar and Media General was contingent on Meredith pulling out of its negotiations with Media General.

Shares of Media General rose 3% premarket to $16.61, while share of Nexstar and Meredith remained inactive.

Write to Anne Steele at [e-mail]

(END) Dow Jones Newswires

January 27, 2016 10:25 ET (15:25 GMT)

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