Friday, 15 December, 2017

SI's parent company Time will be bought by Meredith

REUTERS Time Inc. bought by Meredith Corporation for $2.8B in Koch-backed sale
Juana Turner | 28 November, 2017, 00:45

Meredith has been trying to buy Time Inc. since at least 2013, when its first offer was rejected because the two companies could not agree on what magazine titles would be included in the deal.

The magazines now published by Meredith are not highly circulated, as their current line-up includes niche publications such as Better Homes and Gardens, Every Day with Rachael Ray, and Traditional Home.

Conservative billionaire brothers Charles and David Koch are kicking in $600 million for the purchase, according to the New York Times, although neither Meredith nor Time acknowledged the contribution in their press releases.

Once the two companies are merged, Meredith says they will serve almost 200 million consumers, with its digital media business reaching 170 million monthly unique visitors in the U.S. Meredith and Time Inc. made combined revenues of $4.8 billion in 2016, including $2.7 billion in total advertising revenue (with $700 million of that from digital advertising) and adjusted EBITDA of $800 million. Meredith said it values the deal at $2.8 billion.

After indicating late past year that it was willing to entertain offers, Time shut down the process in April, saying it planned to continue as an independent company. CEO Rich Battista said in a statement. At the time, Meredith was considered a frontrunner in the bidding.

The move to merge the companies has pushed the publisher up the ranks, enabling it to now take a place in the top ten digital media companies globally. Meredith will pay $18.50 per share of the publicly traded Time Inc. However, acquiring Time Inc with the help of the Koch brothers will give their media group access to a total readership of over 130 million and a subscription circulation of close to 60 million, per Reuters. It has traded between $9.90 and $20.40 a share over the past 52 weeks.

"Get ready for next year's new Time Magazine feature "Person of the Last & Next Century" Ayn Rand", Boyle tweeted.

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