SI's parent company Time will be bought by Meredith

Jay Jacobs
November 28, 2017

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.

The acquisition comes at a time wherein print media continues to struggle, with Time Inc. reporting a 9% decrease in its revenue in the first nine months of 2017 compared to the previous year.

The US$18.50-a-share offer is an all-cash one, Meredith said in a statement on Sunday. Time shares jumped 2% in after-hours trading Sunday, and Meredith rose 1.3%.

Meredith's brands include Better Homes & Gardens, Allrecipes, Parents and Shape.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Koch Equity Development will not have a seat on Meredith's Board of Directors, nor will it have any "influence on Meredith's editorial or managerial operations".

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Time has been beleaguered by declining ad revenues since it was spun off from Time Warner in 2014. CEO Rich Battista said in a statement.

"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. "We are also creating a powerful digital media business with 170 million monthly unique visitors in the USA and over 10 billion annual video views, enhancing Meredith's leadership position in reaching Millennials".

In 2013, a similar bid by Meredith fell through because the company did not want to take on some of Time's most popular titles, including Time, Sports Illustrated and Fortune.

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

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