Nexstar Broadcasting offers to buy Richmond-based Media General for $1.85 billion

After being rebuffed in previous efforts, Irving, Texas-based Nexstar Broadcasting Group Inc. has made an unsolicited offer to acquire Richmond-based Media General Inc. for $1.85 billion.

The total value of the transaction is $4.1 billion including debt, according to Bloomberg News.

The acquisition would create a company with 162 television stations in 99 markets, making it the second-largest owner of network affiliates in the nation.

Nexstar contends its deal is far superior to Media General’s “ill-conceived” plan announced in early September to acquire Des Moines, Iowa-based Meredith Corp. for $3.1 billion.

Media General confirmed that it had received Nexstar’s offer and would review it.  The Richmond company added, however, that its board “continues to recommend the proposed transaction with Meredith.”

Nexstar released a letter sent today to Media General Chairman J. Stewart Bryan III, saying it had been rebuffed for many months in attempts to negotiate a deal.

A private proposal dated Aug. 10, Nexstar said, was rejected just two weeks before the announcement of the “value-destructive” Meredith deal.

“We strongly believe a combination of Media General and Nexstar is far more compelling strategically and financially than your planned acquisition of Meredith,” the letter said.

Nexstar’s offer includes $10.50 per share in cash and a fixed ratio of 0.0898 shares per Media General share.  The proposal, currently valued at $14.50 per share, represents a 30 percent premium over Media General closing stock price of $11.15 on Friday.