Iowa-based Meredith has acquired all outstanding shares of Time Inc in an all-cash transaction valued at $2.8 billion. The transaction, unanimously approved by the Board of directors of Meredith and Time Inc, is expected to close during the first quarter of calendar year 2018. The company will be led by Meredith’s executive management team with expertise in integrating acquisitions and operating multi-platform media businesses.
Meredith’s titles include Family Circle, Better Homes and Gardens, AllRecipes, etc while Time has been known by its magazine titles such as Time, Sports Illustrated and People.
“When you combine our strong local television business with the trusted, premium multi-platform content creation of Meredith and Time Inc, it creates a powerful media company serving consumers and advertisers alike. We look forward to completing the transaction; welcoming the Time Inc employees to Meredith; delivering on our pledge to achieve identified synergies; and growing shareholder value,” said Meredith president and COO Tom Harty. The deal would imply that all of Meredith’s brands will now have a readership of 135 million and paid circulation of nearly 60 million. The company anticipates generating cost synergies of $400-$500 million in the first full two years of operation.
“We are creating a premier media company serving nearly 200 million US consumers across industry-leading digital, television, print, video, mobile, and social platforms positioned for growth,” said Meredith’s chairman and CEO Stephen M Lacy, adding, “We are also creating a powerful digital media business with 170 million monthly unique visitors in the US and over 10 billion annual video views, enhancing Meredith’s leadership position in reaching millennials.” The deal between the two publishers could not materialise twice earlier — once in 2013 when Meredith said that it did not want to own some of Time’s magazines; and earlier this year because of the lack of finance. This time, however, an infusion of $650 million from the private equity arm helped overcome the problem and a deal was struck.