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

28 November, 2017, 00:48 | Author: Regina Lloyd
  • Open this

Meredith had expressed interest in buying Time earlier this year and then walked away because it could not secure the necessary financing.

Meredith Corp agreed to acquire Time Inc for US$2.8 billion (S$3.8 billion) including debt, swallowing the once-mighty home of Fortune and Sports Illustrated after the Internet age wreaked havoc on even the most prestigious magazine titles. Time shares jumped 2% in after-hours trading Sunday, and Meredith rose 1.3%. Reuters reports that the deal will be worth $1.84 billion.

$650 million of the equity raised stems from Conservative billionaires the Koch brothers (Koch Equity Development), something that has already lead Meredith to play down their involvement.

Time, which also publishes Fortune and Sports Illustrated, began looking for a buyer late past year before giving up several months later, while welcoming options.




"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.

"We think there's tremendous untapped potential", Time CEO Rich Battista told The New York Times about why the company was turning away potential suitors.

Time Inc announced in June a year ago that it would slim down its cycling portfolio to focus on the flagship title Cycling Weekly. Like other media companies, Time is focusing on moving from a print focus to a multimedia approach.

Meredith's offer is for $18.50 per Time share, up about 10% from the shares' closing price of $16.90 Friday. The Journal reported that Iowa-based Meredith has agreed to pay $18.50 a share in cash - a 46% premium from Time's stock at the time acquisition talks were first reported on November 15. "Thanks anyway!" he wrote on Twitter.

Recommended:

  • Sacked Vincenzo Montella Hopes Gennaro Gattuso Does Well At Milan

    Sacked Vincenzo Montella Hopes Gennaro Gattuso Does Well At Milan

    Montella was sacked on Monday and replaced with Primavera boss Gattuso following a bad start to the Serie A campaign. They drew 0-0 with Torino at home on Sunday and have lost six of their 14 top-flight matches this season.
    UK View: England enraged by Jonny Bairstow 'stitch up'

    UK View: England enraged by Jonny Bairstow 'stitch up'

    Another source told Sportsmail 'Jonny is a rugby man and part of their culture is to bump heads if someone buys them a drink. AAP understands Bancroft has discussed the matter with team management, who are satisfied he did no wrong in the scrap.
    Who Is Dabrett Black? Texas DPS Trooper Shooting Suspect Arrested

    Who Is Dabrett Black? Texas DPS Trooper Shooting Suspect Arrested

    Black has been charged with capital murder of a police officer, and is being held at the Brazos County Jail. One incident in Texas killed one DPS Trooper and another injured a sheriff's deputy in shooting incidents.
  • Prince Harry is getting married; Inside the cost of royal weddings

    Prince Harry is getting married; Inside the cost of royal weddings

    However, they all agreed that in this case, the ring is "priceless" due to its ties to Princess Diana. Markle said she had met Queen Elizabeth, who she said was an incredible woman.
    Ash blankets villages, flights cancelled after Bali volcano erupts

    Ash blankets villages, flights cancelled after Bali volcano erupts

    The eruption caused volcanic ash to fall on nearby villages, forcing residents to flee to the southern part of the island. It is the second major emission from the Indonesian island volcano this week, and flights have been disrupted.
    Vols In Talks With New Head Coach

    Vols In Talks With New Head Coach

    Schiano is now Ohio State's defensive coordinator, be he has a relationship with Tennessee athletic director John Currie. Get daily prep sports headlines from the Gwinnett Daily Post staff delivered to your email.
  • Manchester City defeats Huddersfield

    Manchester City defeats Huddersfield

    Sterling's victor won Man City the three points and move eight points clear of their nearest rivals, Manchester United . We had chances and we were able to win and we are top of the group.
    Bullet-riddled body of man working for Army found

    Bullet-riddled body of man working for Army found

    The locals found the body lying in pool of blood inside Wothmula Nad area of Keegam, after which they informed the police. National Conference leader and former chief minister Omar Abdullah also took to Twitter to condemn the incident.
    India asks Pakistan to guarantee security of Kulbhushan Jadhav's wife

    India asks Pakistan to guarantee security of Kulbhushan Jadhav's wife

    Jadhav has filed an appeal with Pakistan Army chief General Qamar Javed Bajwa to seek clemency, which is still pending. Earlier this month, Pakistan offered to arrange a meeting between Jadhav and his wife on "humanitarian grounds".
  • Army called in to secure capital

    Army called in to secure capital

    Video from the scene Saturday showed law enforcement forces carrying sticks and firing tear gas and rubber bullets at protesters. A mob attacked former Interior Minister Nisar Ali Khan's house in Rawalpindi and broke the main gate of his house.
    Twelve Dead in Georgia Hotel Fire, Say Officials

    Twelve Dead in Georgia Hotel Fire, Say Officials

    In a later post he offered his condolences the families and promised an investigation to find the fire's causes. Participants in the Miss Georgia beauty pageant were among the guests of the hostel at the moment.
    South Africa's Appeal court changes Pistorius's jail sentence to 15 years

    South Africa's Appeal court changes Pistorius's jail sentence to 15 years

    The Supreme Court said that Pistorius "displays a lack of remorse, and does not appreciate the gravity of his actions". The conviction was later overturned and a murder conviction was set in place in 2015.


Popular

US Warns Pakistan of 'Repercussions' over Release of Terror Mastermind
In an interview with the BBC , Saeed said the court's decision was proof of his innocence with regard to the Mumbai attacks. His release came after a panel of judges dismissed a government request to continue his house arrest, which ended Thursday.

President Trump hits the golf course with Tiger Woods, Dustin Johnson
Trump has come under fire from critics who bemoan his pace of almost 700 rounds of golf if he finishes two terms in office. Trump hit up the golf course to spend some time hitting a couple balls with Tiger Woods and Dustin Johnson earlier today.

U.S. welcomes Saudi move to address humanitarian crisis in Yemen
Since Nov. 6, the United Nations and global aid agencies have repeatedly urged the coalition to lift the Yemen blockade. Seven million Yemenis are completely dependent on humanitarian supplies for their survival, according to the UN.

Christmas trees are festive but can be fire hazards
The tree lit up a little before 6:30 p.m. with some saying the big event is really the start of Christmas spirit. Almost 4,000 acres of CT farmland are planted with Christmas trees - the 13th largest acreage in the U.S.

London Subway Station Evacuated After Reports Of Shots Fired
The panic erupted on one of the busiest shopping days, in a jittery city that has been hit by four violent attacks this year. The station was evacuated and panicked shoppers and commuters sheltered in shops and offices in the area.

Black Friday is Alive and Well at the Millcreek Mall
The federation said they would release the weekend's shopping results on November 28, the day after Cyber Monday. One survey found almost half of respondents planned to skip Black Friday and Cyber Monday altogether this year.

CBS and Dish Network cut deal to end three-day blackout
The blackout severely impacted several major markets including New York, Chicago, Philadelphia, San Francisco, Atlanta and Boston. CBS officials said they, too were happy that the tiff was over. "Our customers are clear: they don't want to pay a CBS tax".

Derrick Rose Away From Cavaliers, Mulling Basketball Future
His injury woes began in April 2012 when he tore his ACL during the latter moment of a playoff game that had already been decided. He returned to play in five games but suffered a setback on November 7 and hasn't played since.

World Leaders Condemn Egypt Mosque Attacks, Calls For Collective Action Against Terrorism
In September, Trump promoted the travel ban as well as his own accomplishments in response to the deadly terror attack in London. A tribal leader and head of a Bedouin militia that fights IS said that the mosque is known as a place of gathering for Sufis.

Fallen Kingdom Producer Provides Small Tease
The film is now scheduled for a mid-2018 release and if the rumours are true we'll see trailers start to come out next month. Bayona, was co-written by Trevorrow and is set to be more suspenseful and scary than it's predecessor.