NEW YORK (TheStreet) -- Shares of Media General (MEG) are increasing by 1.8% to $16.42 at the start of trading on Wednesday, as Meredith Corp. (MDP) ends its bid for the company and allows Nexstar Broadcasting Group (NXST) to acquire Media General.
Nexstar will buy Media General for $4.6 billion in accretive cash and stock. 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.
Media General and Meredith agreed to end their merger agreement, according to a statement this morning.
In exchange for the termination, 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.
"We are pleased to have this matter behind us and look forward to working towards completion of our transaction with Nexstar, which we believe is in the best interest of Media General and delivers superior value to our shareholders," Media General CEO Vincent L. Sadusky said in a statement.
Media General agreed to be purchased by Meredith for $2.4 billion in September. Nexstar later offered to acquire the company.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of E+.
This is based on a variety of negative investment measures, which should drive this stock to significantly underperform the majority of stocks that the team rates.
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