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    Media General buying Meredith in $2.4B deal

    By SHOOTUpdated:No Comments508 Views
    This March 11, 2015 file photo shows the Meredith Corp. headquarters building in Des Moines, Iowa. (AP Photo/Charlie Neibergall, File)

    By Michelle Chapman,. Business Writer

    --

    Media General is buying Meredith Corp. in an approximately $2.4 billion cash-and-stock deal.

    The combined company, called Meredith Media General, will have 88 television stations in 54 markets and media brands including Better Homes and Gardens, Allrecipes, Parents and Shape.

    Meredith shareholders will receive cash and stock valued at $51.53 per share. That's a 12 percent premium to the company's Friday closing price of $45.94. Media General stockholders will own about 65 percent of the combined company, while Meredith shareholders will own approximately 35 percent.

    Meredith CEO Steve Lacy will serve as CEO and president of the combined company.

    The board will include 12 members, eight appointed by Media General Inc. and four by Meredith. Media General Chairman J. Stewart Bryan III will serve as chairman of the combined business.

    Meredith Media General will maintain corporate and executive offices in Des Moines, Iowa and Richmond, Virginia. Meredith is based in Des Moines, while Medial General is based in Richmond, Virginia.

    The companies expect more than $80 million in total savings within the first two years after the transaction closes.

    Both companies' boards approved the deal, which is targeted to close by June 30, 2016. It still needs approval from Meredith and Media General shareholders and the Federal Communications Commission.

    Meredith shares rose $5.05, or 11 percent, to $50.99 in premarket trading Tuesday about 20 minutes before the market open while Media General added 95 cents, or 8.5 percent, to $12.10.

    Tags:Media GeneralMeredith Corp.



    DirecTV calls off acquisition of rival Dish, possibly ending a yearslong pursuit

    Friday, November 22, 2024
    Dish Network satellite dishes are shown at an apartment complex in Palo Alto, Calif., Feb. 23, 2011. (AP Photo/Paul Sakuma, File)

    DirecTV is calling off its planned acquisition of rival Dish after the offer was rejected by bond holders at that company.

    The deal was reliant on Dish bond holders agreeing to trade in the debt they held for debt in the new company, a swap that would have cost them about $1.6 billion, collectively.

    The retreat by DirecTV this week may end a years-long effort by the company to acquire both Dish and Sling after it announced the bid in September.

    DirecTV was looking to acquire Dish TV and Sling TV from its owner EchoStar in a debt exchange transaction that included a payment of $1, plus the assumption of approximately $9.8 billion in debt. The deal was contingent on several factors, including regulatory approvals and bondholders writing off debt related to Dish.

    "While we believed a combination of DirecTV and Dish would have benefited all stakeholders, we have terminated the transaction because the proposed exchange terms were necessary to protect DirecTV's balance sheet and our operational flexibility," DirecTV CEO Bill Morrow said in a statement.

    The prospect of a DirecTV-Dish combo has long been rumored, and reported talks resurfaced over the years. And the two almost merged more than two decades ago — but the Federal Communications Commission blocked the deal valued at the time at $18.5 billion deal, citing antitrust concerns.

    The pay-for-TV market has shifted significantly since. As more and more consumers tune into online streaming platforms, demand for more traditional satellite entertainment continues to shrink.

    DirecTV says that it will continue to invest in next-generation streaming platforms and offer new packaging options while integrating content from live TV alongside direct-to-consumer... Read More

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