Meredith Corporation has announced that it is to sell Local Media Group – the company’s 17 station strong television division – to Gray Television for US$2.7 Billion. The move will allow Meredith to focus exclusively on its National Media Group (NMG), which includes magazine brands like People, Better Homes & Gardens, and Parents magazine.
“We expect the transaction to unlock meaningful shareholder value as it advances all of the company’s financial priorities: reducing net debt, improving financial flexibility, allocating capital to fast-growing digital and consumer opportunities, and providing returns to shareholders,” said Meredith Chairman and Chief Executive Officer, Tom Harty.
“This transaction will allow us to sharpen our focus on the potential of our brands and assets. We will invest to accelerate our digital growth and leverage our industry-leading first party data to deepen engagement with consumers across multiple platforms and provide advertising partners with greater value.”
Meredith reaches more adult women than any media company in the US, including 90% of Millennial women. Additionally, Meredith’s brands reach nearly 65 million (or nearly 55%) of US adult men. Digital advertising revenues for the company in the fiscal 2021 third quarter were up 21% and have now surpassed magazine advertising revenue for two consecutive quarters.
Following the deal, which is expected to go through later this year, NMG will retain the Meredith Corporation name and continue to be traded on the New York Stock Exchange (NYSE). The company will remain headquartered in Iowa, with no staffing changes planned at the current time.