FOR IMMEDIATE RELEASE
Wednesday, February 22, 2012
Media General Exploring Potential Sale of Newspapers
RICHMOND, VA. – Media General, Inc. (NYSE: MEG) today announced that it is exploring the potential sale of newspaper operations. Media General said it has received inquiries from several third parties regarding the potential purchase of certain of its print assets. The company wishes to ensure that any divestiture it may make maximizes shareholder value.
Media General has indicated in recent months that it will consider asset sales at valuations that reflect the strength of its properties as a means of reducing total debt outstanding over time. 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. Media General’s newspaper brands are the leading print products in their core markets.
The company said there can be no assurance that any transaction will take place. Media General provided no definitive timetable for the evaluation process to conclude. Additional information will be provided if and when the company enters into a transaction. The investment banking advisory firm Peter J. Solomon Company is assisting Media General with the strategic evaluation process.
This news release contains forward-looking statements that are subject to various risks and uncertainties and should be understood in the context of the company’s publicly available reports filed with the Securities and Exchange Commission. Media General’s future performance could differ materially from its current expectations.
About Media General
Media General is a leading provider of news, information and entertainment across multiple media platforms, serving consumers and advertisers in strong local markets, primarily in the Southeastern United States.The company is transforming itself over time to a digital media model, while continuing to effectively manage its larger, cash producing broadcast television and print platforms. Media General’s operations are organized in five geographic market segments and a sixth segment that includes the company’s interactive advertising services and certain other operations. The company’s operations include 18 network-affiliated television stations and their associated websites and 23 newspapers and their associated websites. Media General operates three digital media advertising services companies: Blockdot, which specializes in interactive entertainment and advergaming technologies; DealTaker.com, a coupon and shopping website; and NetInformer, a leading provider of wireless media and mobile marketing services.
Lou Anne Nabhan