Meredith Corporation MDP, a company that owns multiple TV stations, digital and mobile operations and other media platforms, agreed to acquire Time Inc TIME, the content company best known for operating People, Time, Fortune, and Sports Illustrated magazines.
What You Need To Know
Meredith will pay $1.84 billion ($18.50 per share) to acquire Time in an all-cash deal. The company attempted a similar transaction to acquire Time in 2013 and once again earlier this year.
The combined entity will boast a readership base of 135 million people and paid circulation of 60 million people, Fortune reported.
Why It's Important
Meredith's acquisition is seen by some as being a move to gain better access to internet-savvy millennials as the combined company accounts for 170 million unique visitors in the U.S. and 10 billion annual video views, Fortune said.
What's Next?
Meredith is backed by the private equity arm of the Koch brothers, but they won't be seeking representation on Meredith's board and won't attempt to influence the editorial guidelines and procedures. Meredith also reaffirmed its commitment to pay an annual dividend of $2.08 per share post merger and expects to continue raising its dividend payout.
Time shares were up about 9 percent at $18.42, while Meredith shares were up about 6.5 percent at $64.95.
What Would The Koch Brothers Do With Time, People?
AT&T Counsel: 'No Credible Evidence' Merger Will Hurt Consumers, Competition
Image credit: AK Rockefeller, Flickr
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