Meredith Corporation announced that it has entered into a binding agreement to acquire all outstanding shares of Time Inc. for US$18.50 per share in an all-cash transaction valued at $2.8 billion. The transaction has been unanimously approved by the boards of directors of Meredith and Time Inc., and is expected to close during the first quarter of calendar 2018.
"We are creating a premier media company serving nearly 200 million American consumers across industry-leading digital, television, print, video, mobile, and social platforms positioned for growth," said Meredith Corporation chairman and CEO Stephen M. Lacy. "We are adding the rich content-creation capabilities of some of the media industry's strongest national brands to a powerful local television business that is generating record earnings, offering advertisers and marketers unparalleled reach to American adults. We are also creating a powerful digital media business with 170 million monthly unique visitors in the U.S. and over 10 billion annual video views, enhancing Meredith's leadership position in reaching millennials."
The transaction will create a diversified media and marketing company with calendar 2016 combined revenues of $4.8 billion – including $2.7 billion of total advertising revenues with nearly $700 million of digital advertising revenues – and adjusted EBITDA of $800 million. Additionally, Meredith anticipates generating cost synergies of $400 million to $500 million in the first full two years of operation.
"This is a transformative transaction for Meredith Corporation, and follows a fiscal 2017 in which we posted the highest revenues, profit and earnings per share in our 115-year history," said Meredith president and chief operating officer Tom Harty. "When you combine our strong local television business – which has grown operating profit 15 percent annually over the last five years – with the trusted, premium multiplatform 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."
Key strategic and financial benefits of the transaction:
"To summarise, we believe this acquisition represents a transformative and financially compelling growth opportunity for Meredith Corporation and will increase shareholder value over time," Lacy said. "We are acquiring an impressive portfolio of leading brands and a digital business of scale with tremendous growth potential, complemented by our growing television broadcasting business that produces strong cash flow, fueled by growing political advertising and retransmission revenues. And the company will be led by Meredith's executive management team with expertise in integrating acquisitions and operating multiplatform media businesses."
The transaction is expected to close during the first quarter of calendar 2018.
Meredith and Time Inc. are members of FIPP.
More like this
Axel Springer has announced the acquisition of CeleraOne, a German provider of paid content technology. With the acquisition, the media company becomes a technology provider in the business of payment technology.6th Mar 2019 Deals
Dennis Publishing announced that it has acquired Kiplinger Washington Editors, a publisher specialised in business and personal finance information, in print and online.28th Feb 2019 Deals
Ringier has acquired a minority interest in the Berlin start-up Bot Labs, which was founded in January 2018 by Hubert Burda Media together with Ingo Rübe, the former CTO of the national publishing company at Burda. Bot Labs develops blockchain-based technological innovations for companies and offers cooperative models.3rd Dec 2018 Deals
In a statement released today by Jonathan Newhouse, Steve Newhouse and the Condé Nast board, the company announced it will be restructuring into one global company.27th Nov 2018 Deals
A Swiss digital news publisher has found their conversion rate of registered users to paying subscribers has increased by five times since they have altered their approach from building paywalls to creating "dynamic pay gates".14th Mar 2019 Features
It is early days for developing new mobile storytelling formats. Despite some successful prototypes, most of the heavy lifting is still about to happen, says Jacob Gjørtz, VP marketing at CCI Europe. Based on what we have learnt this far, brevity, video and AI will be central to what happens next.18th Mar 2019 Features
After years of shifts, downsizing, and mergers, some magazine media around the world are feeling the pinch. We're all dealing with strained and sometimes non-existent resources, stretched for time, and tasked these days with doing more with less.18th Mar 2019 Features
There is a lot of discussion within the content marketing, and indeed the publishing industry in general, as to how recent technological innovations are going to change branded communications. Christine Beardsell, chief content officer and board member of C3, and presenter at DIS 2019, is among the figures leading the conversation.18th Mar 2019 Features
An initiative by the BBC to improve and sponsor local news reporting has led to improved standards of local news journalism. While this was largely to be expected, the byproduct has been even more exciting: giving the organisation the ability to spot national trends.11th Mar 2019 Features
Visit our Youtube channelFIND OUT MORE
FIPP newsletters allow you to keep up with industry trends, research, training and events across the worldFIND OUT MORE
What’s happening now, what’s coming next