Meredith buys Time publisher
1 December, 2017
Meredith Corp announced last Sunday it will buy Time Inc, the publisher of Time, People, Sports Illustrated and Fortune magazines, in a $1.84bn all-cash deal, backed by billionaire brothers Charles and David Koch, news wires reported. Meredith has held unsuccessful talks to buy Time earlier this year and in 2013. Once completed, the deal will add news, business and sports brands to the Des Moines-based publisher and broadcaster portfolio, which owns mainly lifestyle magazines.
When combined, the Meredith and Time brands will have a readership of 135m people and paid circulation of nearly 60m. The deal also will expand Meredith's reach on the internet, creating a digital media business with 170m monthly unique visitors in the US and more than 10bn annual video views. According to analysts, bulking up on publishing assets could give Meredith the scale required to spin off its broadcasting arm into a standalone company.
Including debt, the deal values Time at $2.8bn. Meredith said it anticipated cost savings achieved by eliminating overlap in the two companies of $400m to $500m in the first full two years of operation. Koch Equity Development, the private equity arm of the Koch brothers, will offer Meredith $650m in preferred equity to fund the Time acquisition.