NEW YORK – Media conglomerate Meredith Corporation is acquiring Time Inc., publisher of such iconic magazines as Time, Money, PEOPLE and Sports Illustrated, in a deal worth about $2.8 billion.
“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,” Meredith chairman and CEO Stephen Lacy said in a statement.
Under the terms of the deal, Meredith is paying $18.50 a share in cash for Time.
“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,” Lacy said.
The Meredith and Time boards both approved the deal, which the companies expect to close in the first quarter of 2018.
The combined company is expected to have revenues of $4.8 billion, including $2.7 billion of total advertising revenues, with digital advertising revenues reaching nearly $700 million, Meredith said.
“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,” Meredith president and COO Tom Harty said.
Des Moines, Iowa-based Meredith publishes 26 magazines, including Better Homes & Gardens, Family Circle and Shape, focusing on cooking, fashion, home decoration, gardening and other lifestyle subjects.
Time Inc., which was spun off by media giant Time Warner in 2014, publishes more than 90 magazines.
Shares of Meredith Corp. are up $7.25, or 11.89 percent, to $68.25, while Time Inc. shares are up $1.60, or 9.47 percent, at $18.50 in afternoon trading on the New York Stock Exchange.