Meredith Corp. acquires Time Inc. in $2.8 billion Koch-backed deal

Kelly Massey
November 28, 2017

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.

Meredith made an unsuccessful bid for Time in 2013. Time shares jumped 2% in after-hours trading Sunday, and Meredith rose 1.3%.

Meredith, whose magazines include Better Homes and Gardens, Shape and Family Circle, acquired the company for $18.50 per share.

Meredith which will take over Time magazines Sports Illustated, Time, People and Fortune said the Koches will have no involvement in its operation and won't have a seat on its board.

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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. Once part of Time Warner Inc, Time Inc was spun out as a separate unit in 2014 after talks to merge the division with Meredith collapsed.

"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", said Meredith Corporation Chairman and CEO Stephen M. Lacy in a statement.

The other Time brands have also attempted to delve into video and digital, but like SI, haven't been caught on.

"This all-cash transaction, and the immediate, certain value it provides, is in the best interests of the company and its shareholders", Time's Chairman John Fahey said in a statement. Bringing Time's brands to Meredith will bolster the company's roster of publications.

Rothschild also worked with Solera Holdings a deal past year in which the Koch company provided $800 million of preferred equity.

Other reports by Guamnewswatch

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