The deal creates another big local TV station company -- 171 stations covering 100 U.S. TV markets. It will cover 39% of the U.S. -- the FCC's rule maximum for TV ownership. The deal also includes digital businesses.
Meredith and Media General originally announced a deal for $2.4 billion back in September. Nexstar immediately rushed in complaining the deal was undervalued for Media General shareholders.
For its efforts, Meredith will get a $60 million break-up fee -- as well as a first look at certain TV stations and digital businesses owned by Media General that are to be spun off.
The new Nexstar Media Group is projected to have $2.3 billion in annual revenue from its broadcast and digital media businesses -- more than doubling Nexstar’s current annual revenue and cash flow.
Meredith had previously refused Media General’s attempts to terminate their merger agreement, threatening to force a shareholder vote.
Shares of Nexstar declined 3.2% in mid-day Wednesday trading to $47.58. Media General stock inched up 0.2% to $16.15, and Meredith grew 2.8% to$40.00.