Meredith, Media General Agree To Terminate Merger Deal - Quick Facts

(RTTNews) - Diversified media company Meredith Corp. (MDP) and television stations owner Media General, Inc. (MEG) said that they have agreed to terminate immediately the binding merger agreement they entered into on September 8, 2015.

In exchange for terminating the merger agreement, Meredith will receive $60 million in cash payable immediately. The company will also receive an opportunity to negotiate for the purchase of certain broadcast and digital assets currently owned by Media General.

However, Meredith noted that there was no assurance that Media General and Meredith will reach agreement with respect to a purchase of any broadcast and digital assets. Any such transaction is subject to approval of Nexstar Broadcasting Group Inc. (NXST) under Media General's merger agreement with Nexstar.

Stephen Lacy, Meredith Chairman and CEO said, "While we still believe in the strategic and financial benefits a merger with Media General would have created, we are pleased with the financial benefits of the termination agreement and the shareholder value created. Meredith is a strong and growing company with a powerful and diverse media portfolio."

Media General, in early September, agreed to acquire all of the outstanding common stock of Meredith in a cash and stock deal valued at about $2.4 billion. In early January 2016, Meredith proposed an amendment to the terms of its merger agreement with Media General.