Meredith to buy Time Inc. for $1.85 billion

Meredith to buy Time Inc. for $1.85 billion: report

The magazines now published by Meredith are not highly circulated, as their current line-up includes niche publications such as Better Homes and Gardens, Every Day with Rachael Ray, and Traditional Home.

Meredith has attempted to purchase Time before in 2013, but that was unsuccessful.

Charles and David Koch are among the new owners of the recently sold Time Inc., the company that owns and publishes over 100 magazine brands, including Time Magazine.

The all-cash transaction includes about $1.7 billion for the company assets plus more than $1 billion in debt. Meredith said that Koch Equity Development, the investment arm of Koch Industries, will contribute $650 million in equity to help finance the deal.

"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". And its revenue has dropped consistently over the previous year and a half.

The transaction will create a company with combined revenues of $4.8 billion for 2016, including $2.7 billion of total advertising revenues with almost $700 million of digital advertising revenues. The companies expect the transaction to close in the first quarter of 2018, with the merged entity expected to yield $400 million-$500 million in cost synergies in the first two years. Meredith said today it agreed to pay $18.50 per share for all outstanding shares of Time Inc.

Meredith will pay $18.50 per share in cash for Time's almost 100 million outstanding shares.

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