TIME MAGAZINE SOLD TO MEREDITH CORPORATION FOR $2.8 BN
WASHINGTON: Time Inc, the publisher of Time Magazine, is selling for $2.8 billion to media conglomerate Meredith Corporation, backed by the billionaire Koch brothers known for supporting conservative causes, in an unlikely ending to a saga over the future of CNN’s parent company.
Time, which also publishes Fortune and Sports Illustrated, began looking for a buyer late last year before giving up several months later, while welcoming options.
Meredith had expressed interest in buying Time earlier this year and then walked away because it could not secure the necessary financing.
Time revealed in October an aggressive plan to boost revenue that included focusing less on magazine journalism and more on digital activities.
Time Inc was spun off from media and entertainment giant Time Warner, which was seeking to shed its journalism assets.
Meredith’s offer is for $18.50 per Time share, up about 10% from the shares’ closing price of $16.90 on Friday. Share prices rose over the past week on specu- lation over the purchase.
The boards of both companies have approved the transaction, which is due to be finalized in the first semester of 2018, Meredith said in a statement.
The all-cash transaction includes about $1.7 bn for the company assets plus more than $1 bn in debt. Among the funds financing the purchase are $650 mn from Koch Equity Development, a fund belonging to Charles and David Koch. The transaction will create a company with a combined revenues of $4.8 bn for 2016, including $2.7 bn of total advertising revenues with nearly $700 mn of digital advertising revenues.