Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Media General Shares Rise 5% On Potential Newspaper Operations Sale

RELATED NEWS
Trade MEG now with 

Shares of Media General, Inc. (MEG: Quote) rose nearly 5 percent in extended trading on Wednesday after the media communications company said its is exploring the potential sale of its printed newspaper operations. The company added there can be no assurance that any transaction will take place, and provided no definitive timetable for the completion of the evaluation process.

The company revealed that investment banking advisory firm Peter J. Solomon Co. is assisting it with the strategic evaluation process. It also confirmed the receipt of inquiries from several potential parties regarding the purchase of certain of its print assets, without naming anyone.

The move follows the company's recent revelation that it is considering asset sales in order to reduce long-term outstanding debt of about $650 million over time. However, it will sell the assets only if the valuation reflects the the strength of its properties, and maximizes shareholder value.

The move is also in line with the company's said target of transforming itself over time to a digital media model as more and more newspaper owners see an ongoing decline in print media advertising revenue.

In a similar move in early January, the New York Times Co. (NYT: Quote) completed the sale of its Regional Media Group Halifax Media Holdings LLC, consisting of 16 regional newspapers, for $143 million in cash as it transforms to a digitally-focused, multi-platform media company.

Media General's operations include 18 network-affiliated television stations and their associated websites as well as 23 daily newspapers and their associated websites. Its newspaper brands are the leading print products in their core markets, including Richmond Times-Dispatch, the Winston-Salem Journal, and the Tampa Tribune.

The company noted that the valuations of local media properties in recent merger and acquisition transactions, including local newspapers, have reflected the strong market positions of the entities being sold.

MEG closed Wednesday's regular trading session at $5.01, down $0.04 or 0.79% on a volume of 56,511 shares.

Register
To receive FREE breaking news email alerts for Media General and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Stocks came under pressure in early trading on Friday and remained firmly in the red throughout the remainder of the trading session. With the losses on the day, the S&P 500 pulled back well off yesterday's record closing high. President Barack Obama is meeting with presidents from Central American nations on Friday as the U.S. struggles to deal with a surge of unaccompanied children across the southern border. Despite calls from some leading conservatives, the results of a new CNN/ORC International poll released Friday showed that a vast majority of Americans do not believe that President Barack Obama should be impeached and removed from office.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.