Buffets Bid for Media General Case Study
The Final exam will be carried out in a similar structure to other group cases. However, you are to work on this case alone and not share notes with others. This case is checked for plagiarism.
You have been assigned a case study that will test your knowledge of computing 1. WACC and 2. Capital Budgeting Techniques (NPV, IRR, etc…). Make sure that you show all of your work in an excel document or word document. Your final solution will contain three documents, 1. A written report, 2. A case presentation, and 3. An excel/word document outlining your calculations.
Similar to other cases, your mid-term presentation case should have the following sections:
- Case background
- Here you should give an overview of the case. Discuss the background of the company. You do not need to be limited to only material discussed in the case.
- Case Issues
- Outline the issues you identify in the case.
- Potential Solutions
- Outline the solutions you are presenting the JC Penny. Give full explanations. Any necessary calculations need to be included in the written report.
- A summary of your final recommendations
The written report (2-3 pages, no upper limit) should have (at minimum) the following sections:
- Case background
- Potential solutions to the case
- Conclusion and final recommendations
- Work Cited
- Additional question responses
- Index (Include all of your calculations here, no minimum requirement).
Project Deliverables (Should be submitted by the deadline):
- A PowerPoint presentation presenting the primary issue and background of the case
- A written case report detailing your solution to the case.
- An excel/word document outlining your calculations
Instructions Specific to Buffets Bid for Media General
- Why does Warren Buffett want to buy MEG’s newspaper division?
- Is MEG’s newspaper division worth $142 million?
- Start by valuing the newspaper division assuming the cash flow forecast in Exhibit 10.
- How much value, if any, does Buffett derive from the credit agreement?
- As a current lender to MEG, would you refinance the $225 million term loan that is coming due? Would you refinance the term loan as a new lender?
- What should MEG’s CEO Marshall Morton do? What are his options?