NEW YORK (TheStreet) -- Shares of Media General (MEG) are rising by 3.02% to $16.05 on Tuesday afternoon, as Meredith Corp. (MDP) is said to be close to ending its effort to acquire the company, allowingNexstar Broadcasting Group (NXST) to merge with Media General.
Des Moines, IA-based Meredith is close to agreeing to a deal to end its bid, including a $60 million termination fee, according to sources cited by Bloomberg.
An announcement could come when Meredith reports its 2016 second quarter earnings results on Wednesday.
In September, Media General agreed to be bought by Meredith for $2.4 billion. Nexstar and Media General reached a deal for about $2.3 billion later.
The merger with Nexstar cannot proceed without Meredith clearing Media General from its commitment, Bloomberg noted.
Meredith is a media and marketing company that owns broadcast stations and publishes magazines such as Living, Shape and Parents.
Shares of Meredith are gaining by 2.53% to $38.12 on Tuesday afternoon.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of E+.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MEG