Time Inc. agrees to be sold to rival publisher Meredith

Andrew Cummings
November 27, 2017

The companies said the deal was unanimously approved by their boards of directors and will close early next year.

Publisher Meredith, which includes Better Homes & Gardens and Shape among its titles, said it will buy Time Inc., once one of the nation's most influential publishing powerhouses after its founding by Henry Luce in 1922, in a deal it values at $2.8 billion.

United States media company Meredith Corp is close to reaching a deal to buy magazine publisher Time Inc. for more than US$1.8 billion, the Wall Street Journal reports, citing people familiar with the matter.

This television station is owned and operated by the Meredith Corporation.

Meredith - publisher of Better Homes & Gardens and Allrecipes in the United States - has agreed to pay $US18.50 a share for Time, a 46 per cent premium to Time's closing price on November 15.

Do they think it's a good financial bet?

Time is America's largest magazine publisher, but it has struggled amid a massive corporate restructuring and a decline in print revenue. Both companies said the Koch unit won't have a seat on Meredith's board and will have no influence on Meredith's editorial or managerial operations. As part of the transaction, Meredith has reportedly arranged a $600 million cash infusion from a private equity firm, Koch Equity Development, run by Charles and David Koch. In late April, company brass called off a sale effort and instead pledged to continue with the company's strategic turn-around plan, which was seen by company-watchers as an admission that Time Inc. couldn't find a buyer that was willing to meet the company's price.

That deal would come at about $2B, and (as reported) be backed by the conservative billionaire Koch brothers coming in with some $600M in financing.

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