Meredith Corporation announced it has completed its acquisition of Time Inc., and that today (February 1 2018), will be the first day of operations for the combined company. Time Inc. shareholders received US$18.50 per share in an all-cash transaction valued at $2.8 billion originally announced on November 26, 2017.
Meredith also announced fiscal 2018 second quarter and first half results today - more details below.
"With this acquisition, we are creating a premier media and marketing company serving 200 million American consumers that's positioned for growth across industry-leading digital, television, print, video, mobile, and social platforms," said Meredith Corporation Chairman and CEO Stephen M. Lacy. "The combined portfolio joins the rich content-creation capabilities of many of the media industry's strongest national brands with a powerful local television business that is generating record earnings."
"I want to welcome our new employees to Meredith," said Meredith President and Chief Operating Officer Tom Harty. "Together, we are eager to start serving consumers and advertisers alike with trusted, premium multi-platform content and innovative marketing solutions. Since our announcement, teams from Meredith and Time have been developing an integration plan that has positioned us to hit the ground running. We look forward to delivering on our pledge to achieve the identified synergies and grow shareholder value."
"This portfolio of media assets offers advertisers and marketers unparalleled reach to American consumers," Harty said. "In particular, we are creating a powerful digital media business that enhances Meredith's leadership position in reaching Millennials."
To finance the transaction, Meredith secured the following:
These proceeds were used to finance the acquisition, refinance existing debt and pay transaction costs.
Meredith today reported fiscal 2018 second quarter earnings per share were $3.49, compared to $1.58 per share in the prior-year period. Fiscal 2018 second quarter results included the following special items:
Excluding these special items, fiscal 2018 second quarter earnings per share were $1.14. This compares to earnings per share excluding special items of $1.30 in the prior-year period. As expected in an off-election year, Meredith recorded $38 million, or $0.52 per share, less of high-margin incremental political advertising revenues in the second quarter of fiscal 2018 than in the prior year.
"We were quite pleased to report record earnings per share for a non-political second quarter and first half, driven by strong growth in non-political advertising revenue in our Local Media Group, along with record digital performance and solid expense discipline in our National Media Group," said Lacy.
Read the full details of the report here.
Meredith is a member of FIPP.
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