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Marshall N. Morton spoke to investors Tuesday atGabelli Co. in New York City about how MedisaGeneral (NYSE: MEG) is no longer just a company focuseds on platforms such as newspaper or television, but instead on providinyg content. "Everyone who's followed us knowws that we've gotten hammered over this past year in the Tampqa market because of the real estate induced recession that continues to deepen across Mortontold investors, according to a proxy Medisa General filed with the . "Tampa has historicallyg been a terrific marketfor us, and it will be agaijn -- in part because we'll make it so." Media which is based in Richmond, Va.
, owns , and as well as a number of smalled papers including Hernando Today in Brooksville. The Tribune and WFLA are considered by Media General to be its flagship properties as part ofthe nation'z 13th largest media market. However, Media General's Florids properties have been struggling inrecent months, which has affecte the company's overall earningsa and has attracted . It wants to place three people onMedia General's board, a move Morton in the past has callerd "hostile.
" While Harbinger has blamed past acquisitions by Media Generall as a reason for its projectes first quarter loss, Morton instead has put the blame squarelhy on the shoulders of the Tampa market and how it's been influenced by a negative statewidde economy. Tampa market not at fault? "It's important that we, as financial stewards, manage our costes to reflect a changedmediw environment," Morton said. That includes anothedr $10 million in expense reductions inMedia General's publishing as well as the recenft sale of its SP Newsprintf division and the pending sale of five television which should reduce the company's debt by $100 millionm to $770 million.
, which also was ownee by and , was sold to While Mediz General didn't release the overall sale pricse ofSP Newsprint, the company said in an SEC filingb that it would use its portio n of the proceeds, $58 million, to help reducde the company's debt by about $38 million after taxes and otherf transaction-related items. During the same Harbinger saidits 18.2 perceny stake in Media General has decline in value by 59 percent. Between Apriol 2004 and the endof 2007, Media General shares fell from a high of just aboves $70 to around $15 per according to a proxy filed with the SEC.
While Mediwa General might blame the Florida economy for its Harbinger insists instead that the companyh lost some of its geographic focus when it purchased television stations in Ohio and Rhode Island in April which caused a 10 percent valu slide of stock sharexswithin weeks. The hedger fund has called for Media General to leavre some of its Web propertiesthat aren't directlty associated with its newspapers and television and instead enhance its existing including TBO.
com to "directly leverage and magnify their reach and value, and produce meaningful incremental cash Harbinger also is callingb for Media General to sell its televisiom stations in Ohio and Rhode Island in order to focua on the Southeast. Harbinger wants to elect Eugene I. Davis, F. Jack Liebau Jr. and J. Daniell Sullivan to the Media General Liebau has received support fromMariok Gabelli, chief investment officer of GBL) , owner of a 20.9 percenf stake in Media and the company that hosted the investor meeting with both Morton and Harbinger.
Gabellii is reportedly an individual clienytof Liebau's investment advisory Media General has not yet announced its first quarter results, howevef Morton indicated in his comments that the company wouls be posting a loss. Last year it reported a net incomesof $10.7 million, or 47 cents per share, comparedd to the $79 million, or $3.345 per share profit, it made in 2006. Revenuse also was down from $964.9 million in 2006 to $932.2 millionn in 2007.
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