Time Inc., Meredith Shares Rise After Mega-Deal Announced
- Author: Eleanor Harrison Nov 28, 2017,
Nov 28, 2017, 0:46
"I am proud of our accomplishments and thank the talented teams across the company for their extraordinary work, relentless commitment, and passion", Time Inc.
U.S. media company Meredith Corp said on Sunday it will buy Time Inc, the publisher of Sports Illustrated and Fortune magazines, in a $1.84 billion allcash deal backed by conservative billionaire brothers Charles and David Koch.
The all-cash transaction includes about $1.7 billion for the company assets plus more than $1 billion in debt.
"We are creating a premier media company serving almost 200 million American consumers across industry-leading digital, television, print, video, mobile, and social platforms positioned for growth", Meredith chairman and CEO Stephen M. Lacy said in a statement.
"Meredith wanted to buy Time Inc. back in 2012, but didn't want Time magazine", former Time magazine Editor Richard Stengel tweeted following the deal's announcement this morning.
The other Time brands have also attempted to delve into video and digital, but like SI, haven't been caught on.
After indicating late previous year that it was willing to entertain offers, Time shut down the process in April, saying it planned to continue as an independent company. Meredith approached Time again earlier this year, but those discussions also stalled when Meredith reportedly failed to secure enough bank financing for the acquisition.
Combined, the companies posted $4.8bn in revenue previous year.
Meredith said it will pay $18.50 a share for Time.
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.
The transaction is expected to close during the first quarter of calendar 2018. Additionally, Meredith anticipates generating cost synergies of $400 million to $500 million in the first full two years of operation.