Nexstar/Media General deal

E-Cam said:

Am I missing something? Isn't Media General buying Meredith and now Nexstar is buying Media General? I guess by 2020, a new name of broadcasting emerge called "E.W TegTribSin NexMedia General" and then you have the network O&Os.

Kinda reminds me of that classic Simpsons episode that takes place in the future about Lisa's wedding. One part, the family is watching TV and the channel was CNNBCBS.

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Nexstar Broadcasting Group Enters into Definitive Agreement to Acquire Media General for $4.6 Billion in Accretive Cash and Stock Transaction

Nexstar Broadcasting Group, Inc. and Media General, Inc. announced today that they have entered into a definitive merger agreement whereby Nexstar will acquire all outstanding shares of Media General for $10.55 per share in cash and 0.1249 of a share of Nexstar Class A common stock for each Media General share. The agreement includes potential additional consideration in the form of a contingent value right ("CVR") entitling Media General shareholders to net cash proceeds as received from the sale of Media General's spectrum in the Federal Communication Commission’s upcoming Incentive Auction. Upon closing, the transaction is expected to be immediately accretive to Nexstar’s operating results (inclusive of expected financial and operating synergies and the planned divestiture of certain assets). To reflect its broadened base of operations and capabilities, Nexstar will change its name to Nexstar Media Group, Inc. upon the completion of the transaction.

The execution of the definitive agreement between Nexstar and Media General follows the termination of the proposed merger transaction between Meredith Corporation and Media General. Pursuant to the Meredith-Media General merger agreement, Meredith will receive the $60 million termination fee. In addition, Meredith will receive an opportunity to negotiate for the purchase of certain broadcast and digital assets currently owned by Media General.

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Cox Plans to Oppose Nexstar-Media General

Cox Communications, in the midst of a retransmission consent battle with Nexstar, is opposing Nexstar’s deal to grow more powerful by acquiring Media General.

“Nexstar is demanding Cox Communications customers pay triple the current price for retransmission consent or Nexstar will remove their signal from the Cox Communications lineup on January 29,” Cox said in a statement. “Nexstar won't even accept the very same rate that stations they manage agreed to just two weeks ago. As reported in Broadcasting and Cable Magazine, 'Nexstar sees the merger as a way to improve retransmission consent renegotiations.'”

“Nexstar should not be allowed to become a larger company, which would force more cable TV/satellite companies and ultimately customers to pay higher fees for retransmission consent. This merger is bad for business, bad for consumers and is not in the public interest,” Cox said.

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PTBoardOp94 said:

Nexstar and Media General have now entered a merger agreement, replacing the one that Media General and Meredith entered late last year. This one values Media General at $4.7 billion, and greatly increases Nexstar's footprint in larger markets.

http://bizbeatblog.dallasnews.com/2016/01/nexstar-wins-media-general-in-4-7-billion-deal.html/

There's a few divestitures that may be necessary for this deal to be approved. Going down the list from Wikipedia (so may not be comprehensive because they listed by CoL and not market):

Terre Haute, IN (WTHI [CBS/FOX], WTWO [NBC], WAWV [ABC])
Davenport, IA (KWQC [NBC], KHBF[CBS], KLJB [FOX], KGCW [CW])
Lafayette, LA (KFLY [CBS], KADN [FOX/NBC/My])
Roanoake, VA (WSLS [NBC], WFXR [FOX], WWCW [CW])

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Nexstar Selling Five Stations in Four Markets

Nexstar Broadcasting Group today said it will sell five TV stations in four markets to comply with FCC ownership caps as part of its previously announced agreement to acquire Media General. Nexstar said it anticipates announcing additional station divestitures shortly.

Nexstar is selling WCWJ, the CW affiliate in Jacksonville, Fla. (DMA 47), and WSLS, the NBC affiliate in Roanoke-Lynchburg, Va. (DMA 69), to Graham Media Group for $120 million.

In addition, Nexstar will sell KADN (Fox) and KLAF-LD (NBC) Lafayette, La. (DMA 121), to Bayou City Broadcasting Lafayette for $40 million in cash. BCBL is a minority-led broadcaster owned by affiliates of Bain Capital Credit and Bayou City Broadcasting, the latter of which is owned by DuJuan McCoy, who serves as BCBL’s president-CEO.

Nexstar also is selling KREG Denver (DMA 17) to Marquee Broadcasting. Marquee and its affiliates, a woman-owned broadcast group that owns three TV stations in Maryland, Georgia and Delaware, is led by Patricia R. Lane. KREG currently operates as a satellite station of Nexstar-owned CBS affiliate KREX and, upon consummation of the sale, will no longer operate as a satellite of KREX.

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GRAY TO ACQUIRE #1 RANKED TELEVISION STATIONS IN GREEN BAY AND DAVENPORT MARKETS

Atlanta, Georgia – June 3, 2016. . . Gray Television, Inc. (“Gray,” “we,” “us” or “our”) (NYSE: GTN and GTN.A) announced today that it has reached an agreement with Nexstar Broadcasting Group, Inc. (“Nexstar”) to acquire, for $270 million in cash, two television stations that Nexstar will divest upon its merger with Media General, Inc.: WBAY (ABC), in Green Bay, Wisconsin, and KWQC (NBC) in Davenport, Iowa, both currently owned and operated by Media General.

The addition of these two mid-market television stations will be immediately free cash flow accretive while also allowing Gray to further deleverage its balance sheet. Gray will acquire WBAY and KWQC concurrently with the closing of the Nexstar/Media General merger, which the parties anticipate will occur in the fourth quarter of 2016.

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JeeperOne said:

Dunno about the other stations but I expect TEGNA, Raycom & Hearst to be in the running for WSLS given its proximity to Richmond & the Baltimore/DC area

JMO though.....

Cheers & 73

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