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
Future announced the proposed acquisition of five specialist consumer titles from Haymarket Media Group for up to GBP £14m (US $19.8m). The five titles are, What Hi-Fi?, Stuff, FourFourTwo, Practical Caravan and Practical Motorhome.
Following the acquisition of Boomerang TV in Spain and the Aito Media Group in Finland, Lagardère Studios is now investing in the Netherlands, having secured a majority stake in the capital of Skyhigh TV.13th Mar 2018 Deals
Apple is to buy the digital magazine service Texture, which lets users read titles for a monthly subscription fee. Via The Guardian.13th Mar 2018 Deals
Singapore Press Holdings Limited (SPH) will release a new slate of digital videos in partnership with the Info-communications Media Development Authority (IMDA), as part of IMDA’s Public Service Broadcast (PSB) initiative.6th Mar 2018 Deals
It’s been another year of rapid change and innovative publishers continue to assemble a quiver full of new solutions to drive their businesses forward – something that becomes apparent when you page through the new 2018/19 edition of Innovation in Magazine Media 2018-2019 World Report, launched today at Digital Innovators’ Summit (DIS) in Berlin.19th Mar 2018 Features
While digital titles specialising in health and well-being are showing strong growth in developed markets such as Finland, the next step is to lead consumers from inspiration to transaction, and to go global, says new FIPP board member Kaisa Ala-Laurila, CEO of A-lehdet in Finland.12th Mar 2018 Features
Maureen Hoch, editor of Harvard Business Review’s HBR.org on Monday provided insight into the experimental work HBR has been doing with new media formats in the past year to reach and engage audiences, including subscribers, in new ways.19th Mar 2018 Features
From being described as an “internet midget” losing hundreds of millions a mere 17 years ago, Axel Springer managed to rebuild itself into a digital publishing powerhouse. Dr. Andreas Wiele, President Classifieds and Marketing Media at Axel Springer, Germany, explains how the German media giant faced off a near death experience.20th Mar 2018 Features
In a world where content distribution has gone digital, we are witnessing the death of industrial marketing - paving the way for the Amazonification of media: a digital environment were the gap between inspiration and transaction will be closed down almost completely, says Troy Young, Global President, Hearst Digital Media, USA.19th Mar 2018 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
Get global coverage of your launches, company news and innovationsFIND OUT MORE
What’s happening now, what’s coming next