Meredith to buy U.S. publisher Time in Koch-backed deal
Baku, November 28, AZERTAC
U.S. media company Meredith Corp said on Sunday it will buy Time Inc, the publisher of People, Sports Illustrated and Fortune magazines, in a $1.84 billion all-cash deal backed by conservative billionaire brothers Charles and David Koch, according to Reuters.
The deal is a coup for Meredith, which held unsuccessful talks to buy Time earlier this year and in 2013.
It will give news, business and sports brands to the Des Moines, Iowa-based publisher and broadcaster, which owns lifestyle magazines such as Better Homes & Gardens and Family Circle. Analysts have said that bulking up on publishing assets could give Meredith the scale required to spin off its broadcasting arm into a standalone company.
When combined, the Meredith and Time brands will have a readership of 135 million people and paid circulation of nearly 60 million. The deal also will expand Meredith’s reach with internet-savvy millenials, creating a digital media business with 170 million monthly unique visitors in the United States and more than 10 billion annual video views.
Meredith said it expected the deal to close in the first three months of 2018. Reuters reported earlier on Sunday that the companies were nearing an agreement.
Including debt, the deal values Time at $2.8 billion. Meredith said it anticipated cost savings achieved by eliminating overlap in the two companies of $400 million to $500 million in the first full two years of operation. Meredith added it would launch a tender to acquire Time shares for $18.50 in cash.
“We are adding the rich content-creation capabilities of some of the media industry’s strongest national brands to a powerful local television business that is generating record earnings, offering advertisers and marketers unparalleled reach to American adults,” Meredith Chief Executive Stephen Lacy said in the statement.
Meredith said it would continue to pay its current annual dividend of $2.08 per share, and expects ongoing annual dividend increases.
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