In a statement released by Meredith, the company says it will receive US$60m in cash payable immediately as a result of the termination, as well as an “opportunity to negotiate for the purchase of certain broadcast and digital assets currently owned by Media General”.
“While we still believe in the strategic and financial benefits a merger with MediaGeneral would have created, we are pleased with the financial benefits of the termination agreement and the shareholder value created,” said Meredith chairman and CEO Stephen M. Lacy.
“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,” said Media General chief executive officer, Vincent L. Sadusky.
There is no assurance that Media General and Meredith will reach agreement with respect to a purchase of any broadcast and digital assets, any such transaction being subject to approval of Nexstar Broadcasting Group under Media General’s merger agreement with Nexstar.
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