Nexstar Broadcasting Group said it has negotiated terms to acquire Media General.
The transaction would pay $10.55 a share, plus 0.1249 of a Nexstar share for each Media General share.
Nexstar said it will sign a definitive agreement to acquire Media General after Media General terminates its transaction with Meredith Corp. Nexstar said the form of merger agreement has already been fully negotiated.
The Nexstar-Media General-Meredith triangle has played out over the last few months and is part of a larger story of consolidation in the broadcast business.
Media General agreed to a deal with Meredith, but Media General shareholders weren't impressed that Meredith had print assets in its portfolio in addition to its TV stations and digital properties.
Nexstar swept in with a richer offer but at first it was rejected by Media General.
"We are pleased to have negotiated these transaction terms with Media General as we believe the combination would be a transformational event that enables both companies' shareholders to participate in the near- and long-term upside of a pure-play broadcasting company with expanded audience reach, a more diversified portfolio and a significantly stronger financial profile, led by a proven broadcast and digital media management team," said Perry Sook, CEO of Nexstar.
"We are confident that a combined Nexstar / Media General would be strongly positioned for long-term success in a dynamic and consolidating broadcast market. Specifically, the combined company would be highly attractive to programmers and advertisers alike, while the anticipated year-one synergies of $76 million and generation of over $500 million of annual free cash flow will enhance long-term shareholder returns," Sook said.
Nexstar said it intended to divest TV stations necessary to get FCC approval for the deal. In additinon, at closing Nexstar's board of directors would add two Media General directors.