Shareholders recently urged a law office to investigate the pending merger between two media companies due to the deal potentially not giving those who own stock enough value. There is a possibility that this could become a securities class action lawsuit in the future.
Law office Robbins Arroyo, LLP, noted it began looking into the purchase proposal of Lin Media, LLC, by Media General, Inc. The pending deal was agreed to on March 21, 2014, and would give shareholders of Lin Media $27.82 in cash or approximately 1.57 shares of the new company for each of their shares. When considering Media General's stock price at the end of March 20, 2014, shareholders of Lin Media would get $27.33 if they selected the latter option.
There may be some issues about whether shareholders received enough value during the process. Lin Media also may be worth more than the valuation produced by the deal. A Wedbush Securities, Inc., analyst noted on Feb. 7, 2014 that the company had a share target price of $32.
The company noted in its financial report for the fourth quarter of 2013, as well as the full 2013 year, that it had growth in multiple types of revenues.
"Significant growth of our digital media business and pay TV subscriber fees helped offset comparisons to the prior year when we earned record political revenues," said Vincent Sadusky, president and CEO at Lin Media. "Excluding political revenues, we increased net revenues by 20 percent in the fourth quarter and 35 percent for the full year."
There are options for shareholders to discuss these matters. Darnell Donahue is available to answer any questions that shareholders may have, and he can be reached by telephone or email. It is also possible to visit the law firm's website to gain more details on this investigation.
Second investigation underway
Another law office noted it will be investigating the pending sale of Lin Media to Media General. Like the aforementioned process, this also could become a securities class action claim.
The Law Offices of Vincent Wong announced it will look into many of the aforementioned claims, on behalf of shareholders.
For those who would like to learn more about the process, it is an option to speak with the law office. Vincent Wong is best to contact, and he can be reached by telephone or email, while the law firm's website also has further information.