This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Acquisition Of LIN Media LLC By Media General, Inc. May Not Be In LIN Media Shareholders' Best Interests

Stocks in this article: LIN MEG





SAN DIEGO and PROVIDENCE, R.I., March 21, 2014 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of LIN Media LLC (NYSE: LIN) by Media General, Inc. (NYSE: MEG).  On March 21, 2014, the companies announced the signing of a definitive merger agreement pursuant to which LIN Media shareholders will receive, $27.82 in cash or 1.5762 shares of the new holding company for each share of LIN Media stock.  Based on Media General's closing price of $17.34 on March 20, 2014, LIN Media shareholders will receive $27.33 in stock if that consideration type is chosen.

Robbins Arroyo LLP.

Is the Proposed Merger Best for LIN Media and Its Shareholders?

Robbins Arroyo LLP's investigation focuses on whether the board of directors at LIN Media is undertaking a fair process to obtain maximum value and adequately compensate LIN Media shareholders.  

As an initial matter, the $27.82 merger consideration represents a premium to shareholders of 29.5% based on LIN Media's closing price on March 20, 2014. This one day premium is significantly below the median one day premium of over 90.48% for comparable transactions in the last three years.  Further, prior to the announcement of the merger, an analyst at Wedbush Securities, Inc. set a target price of $32.00 on February 7, 2014.  Moreover, LIN Media has traded above the offer price as recently as January 9, 2014, reaching a high of $29.24.

In addition, on February 6, 2014, LIN Media released its financial results for the fourth quarter and full year 2013, reporting strong increases in net revenues, local revenues, and interactive revenues.  Specifically, LIN Media reported annual revenues of $652.4 million, an 18% increase compared to 2012.  In addition, the company reported a 35% increase in local revenues and an 85% increase in interactive revenues.  LIN Media also reported that the company's core local and national time sales increased 9% in the fourth quarter and 24% for the full year, compared to 2012, while it expanded local news at 11 television stations. 

In announcing the company's result, LIN Media's President, and Chief Executive Officer, Vincent L. Sadusky, stated, "Significant growth of our digital media business and pay TV subscriber fees helped offset comparisons to the prior year when we earned record political revenues.  Excluding political revenues, we increased net revenues by 20% in the fourth quarter and 35% for the full year.  Looking ahead, we are confident in the evolution of our company and our ability to capitalize on our recent acquisitions."

Given these facts, Robbins Arroyo LLP is examining the LIN Media board of directors' decision to sell the company to Media General now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects. 

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs