The media companies making digital industry news with mergers & acquisitions, rebranding, and more
Media General and Meredith made major digital industry news recently when they announced a mega-deal was in the works that would see the former acquire the latter to form a publishing and broadcast monster, taking multiplatform strategy to a whole other level. The terms were reported as a 65% stake for $2.4 billion.
But Nexstar has trumped that digital industry news with a bombshell of its own.
Is the Meredith-Media General Deal in Danger?
It’s publishing executives vs. broadcast executives vs. more broadcast executives in the escalating dogfight known as the proposed acquisition of Meredith by Media General.
Just weeks into the developing Meredith-Media General deal, a second suitor is attempting to cut in. Nexstar, another broadcast company, is making a bid to buy Media General at $10.50 per share, valuing the company at $4.1 billion, Folio: reports.
“The ill-conceived Meredith transaction, which caused an immediate drop in Media General’s stock price and criticism from a number of your investors and analysts, exposes Media General once again to the publishing business and creates a pro-forma EBITDA mix with significant exposure to publishing”, Nexstar’s letter to Media general says.
“Were you to engage with us, we believe you could deliver significantly more value to your shareholders.”
Meanwhile, here’s what Media General had to offer in the way of a response:
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“Consistent with its fiduciary duties, the Media General Board of Directors, in consultation with its legal and financial advisors, will carefully review and consider the proposal to determine the course of action that it believes is in the best interests of the Company and its shareholders,” the company said in a statement.
“Media General shareholders are advised to take no action at this time. Media General will have no further comment on the proposal until the Board has completed its review.”
The biggest upside for Media General in this deal is the “pure-play” broadcasting aspect Nexstar would offer (162 stations in 99 markets) rather than delving back into publishing with Meredith so soon after divesting its newspaper holdings, according to Folio:.
As of this writing, there’s no final word on which direction Media General will go in, but we’ll keep you posted.
Axel Springer Formalizes Purchase of Business Insider
What was once a rumor is now a reality, as Axel Springer is indeed acquiring another 88% of web traffic juggernaut Business Insider for $343 million, Folio: reports. Axel Springer already owned 9% of the site. Henry Blodget will stay with the company, according to Folio:.
The Rebranding of Reader’s Digest
After 93 years, the Reader’s Digest Association has changed its name to Trusted Media Brands Inc, Folio: reports. Agency Starfish orchestrated the full shift, which included a website redesign and a new logo to reflect the company’s digital advances, like online learning platform EnrichU.
What digital industry news are you keeping an eye on? Let us know in the comments!
To read more digital industry news, visit Folio:.