Time Inc. agrees to be sold to rival publisher Meredith

  • Time Inc. agrees to be sold to rival publisher Meredith

Time Inc. agrees to be sold to rival publisher Meredith

Time chairman John Fahey said the sale was in the best interests of the company and its shareholders, noting the price represented a 46% premium to the closing price of shares on 15 November, the day prior to media reports about the deal. Meredith said they will have no influence in the combined company.

Meredith made an unsuccessful bid for Time in 2013.

Meredith Corp is buying Time Inc for about $1.8bn (£1.35bn), a deal CEO Stephen Lacy called "a transformative and financially compelling growth opportunity" that joins two giant magazine companies.

As it turns out, the Koch brothers are contributing more than that.

Time Inc. was bought by Meredith Corporation for $2.8 billion.

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That deal would come at about $2B, and (as reported) be backed by the conservative billionaire Koch brothers coming in with some $600M in financing. The brothers are supporters of libertarian and conservative causes and especially generous with funding for climate denial. According to Meredith, KED will not have a seat on its board, and will have "no influence on Meredith's editorial or managerial operations".

Meredith, whose magazines include Better Homes and Gardens, Shape and Family Circle, acquired the company for $18.50 per share. The publishing giant has a portfolio of 17 television stations in 12 markets, which reach an estimated 11% of USA households TVs.

Meredith said the first two years after the acquisition are expected to generate cost synergies of $400 million to $500 million, which is probably not reassuring to Time Inc. employees considering its multiple layoff rounds this year.

Meredith's portfolio includes 17 local television stations in 12 United States markets, as well as publications such as Better Homes & Gardens, Allrecipes, Parents and Shape. Time shares jumped 2% in after-hours trading Sunday, and Meredith rose 1.3%.