SUCCESS: Media General CVR successfully paid out from Nexstar
The CVRs related to the net proceeds from the sale of Media General’s spectrum in the FCC Broadcast Incentive Auction
Seller: Media General MEG Buyer: Nexstar
Acquisition: 1/18/2017 CUSIP number: 58441K100
On January 27, 2016, Nexstar Broadcasting Group, Inc., and Media General, Inc., entered into a merger agreement providing for the acquisition of Media General by Nexstar. Under the terms of the merger agreement, each share of Media General common stock will be converted into the right to receive
(i) $10.55 in cash, without interest,
(ii) 0.1249 of a share of Nexstar Class A common stock and
(iii) one non-transferable contingent value right, or CVR. The CVRs relate to the net proceeds (if any) from the sale of Media General’s spectrum in the FCC Broadcast Incentive Auction, which we refer to as the “FCC auction,”
Announced January 27, 2016 For holders as of: May 5, 2016
Meeting date: June 8, 2016 Merger date: June 18, 2017
CVR payout
This merger brought out some interesting incentives, namely there was an auction for the asset they didn't involve the two parties merging and there was a lot of speculation at the time about how much the spectrum was worth. there were a lot of casual observers that started giving opinions on it. Maybe because management didn’t have any control over it, was one of the reasons why it worked well. A small piece dragged on to 2022 which was probably just netting out some tax concerns.
