Today the Postal Regulatory Commission issued Orders 4875 and 4876 approving the Postal Service’s planned rate adjustments for both Market Dominant products and Competitive products respectively. Rate increases for Market Dominant products must meet certain statutory and regulatory requirements, the most prominent of which is that such increases be no greater than the rate of inflation, as determined by the Consumer Price Index for All Urban Consumers. Conversely, the Postal Accountability and Enhancement Act requires, among other things, that rates for Competitive products must produce sufficient revenues to ensure they are not subsidized by Market Dominant products. The Commission found that the rates for both classes of mail meet all statutory requirements and may take effect, January 27, 2019, as planned. The Commission also found that the planned classification changes, with the revisions set forth in Orders 4875 and 4876, are consistent with applicable law. Click read more below for additional detail.
Meredith Corporation (NYSE: MDP) today announced that it has accepted a revised proposal from Gray Television, Inc. (NYSE: GTN) to acquire Meredith’s Local Media Group (“LMG”) for approximately $2.825 billion in cash (“the revised Gray proposal”), and that the two companies have entered into an amendment to their previously announced definitive merger agreement reflecting the revised terms. Under the terms of the revised Gray proposal, Meredith Corporation shareholders would receive $16.99 per share in cash, revised from the previously announced $14.51 per share in cash, and 1-for-1 equity share in post-close Meredith.
Meredith received an unsolicited proposal from another party after announcing the definitive agreement with Gray (“the unsolicited proposal”) and subsequently received the revised Gray proposal. Meredith’s Board of Directors gave due consideration to both proposals and carefully assessed the risks and benefits of each and unanimously approved the revised Gray proposal. The Board of Directors of Meredith unanimously recommends that Meredith shareholders vote in favor of the revised Gray proposal.
The transaction is still expected to close in the fourth quarter of calendar 2021, and there have been no changes to the previously announced anticipated closing process. The Federal Communications Commission accepted Meredith and Gray’s applications for the transaction’s approval on May 26, 2021.