Meredith Agrees to Allow Nexstar-Media General Deal to Go Aheadby
Magazine publisher to receive $60 million breakup fee
Pact also lets Meredith have first look at some TV stations
Meredith Corp. walked away from its attempt to merge with Media General Inc., allowing Nexstar Broadcasting Group Inc. to proceed with its plan to acquire the TV station owner after months of negotiation.
Meredith, the owner of broadcast stations and magazines like Better Homes and Gardens and Fit Pregnancy, agreed to a termination package that includes a $60 million breakup fee. The pact also includes a first look at certain TV stations and digital businesses owned by Media General. Bloomberg reported Tuesday that the companies were close to announcing the termination agreement.
“We are pleased to have this matter behind us and look forward to working towards completion of our transaction with Nexstar, which we believe is in the best interest of Media General and delivers superior value to our shareholders,” Media General Chief Executive Officer Vincent L. Sadusky said in a statement Wednesday.
Media General initially agreed to acquire Meredith for $2.4 billion in September. Nexstar later offered to buy Media General, eventually reaching an agreement for about $2.3 billion. But that deal couldn’t move forward until Meredith released Media General from its commitment. Meredith had previously refused Media General’s attempts to terminate their merger agreement, threatening to force a shareholder vote.