NEW YORK (TheStreet) -- Shares of Nexstar Broadcasting Group (NXST) - Get Report are increasing by 1.49% to $49.87 at the start of trading on Wednesday, as the company acquires Media General (MEG) for $4.6 billion after Meredith Corp. (MDP) ended its bid for the company.
The Irving, TX-based company will purchase all outstanding shares of Media General for $10.55 per share in cash and 0.1249 Nexstar stock for each Media General share they own.
The deal is expected to more than double Nexstar's revenue and adjusted EBITDA and result in over $500 million of annual free cash flow.
Media General and Meredith agreed to terminate their merger agreement, according to a statement on Wednesday morning.
In exchange for ending the deal, Meredith will receive $60 million in cash and an opportunity to negotiate for the purchase of certain broadcast and digital assets owned by Media General.
Nexstar is a television broadcasting and digital media company focused on the acquisition, development and operation of television stations and interactive community websites in medium-sized markets.
Richmond, VA based Media General is a connected-screen multimedia company that provides news, information and entertainment.
The merger will create the third-biggest U.S. group owner after Fox (FOXA) and CBS (CBS).
Separately, TheStreet Ratings Team has a "buy" rating with a score of B on the stock.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, growth in earnings per share, increase in net income and good cash flow from operations.
The team believes its strengths outweigh the fact that the company has had generally high debt management risk by most measures that were evaluated.
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: NXST