Follow up now on a story we reported last week concerning the proposed merger between Media General and Meredith.
After a Media General board meeting held last Friday, the company has decided to negotiate with Nexstar over terms of a bid by Nexstar to buy all outstanding common stock of Media General.
However, internal working documents, obtained by The Laurel, also indicate that the Media General board would rather proceed with its plans to merge with Meredith. Media General believes Nexstar’s offer, “significantly undervalues Media General and its prospects.”
One concern may be Nexstar’s failure to recognize the value of WCTX, channel 59, which is owned by Media General.
If negotiations with Nexstar fail, the Media General board has voiced a preference to go forward with the previously announced merger with Meredith, which would force the sale of either WTNH or WFSB. Employees of both stations have been following developments closely.
Bottom Line: Media General would rather do its deal with Meredith, but since Nexstar has stuck its finger in the pie, Media General’s board feels it has no choice to see if a better deal can be had.
