An Iowa-based publishing powerhouse is buying another giant in the industry.
Meredith Corporation and Time Inc. announced the deal on Sunday and Meredith CFO Joseph Ceryanec discussed some of the details in a conference call with investors this morning.
“The transaction is valued at $2.8 billion and that includes refinancing nearly $900 million of Time Inc.’s net debt,” Ceryanec said. Meredith had previously tried to buy Time earlier this year and in 2013, but talks were broken off. This time, the deal was secured through a large investment by Charles and David Koch the billionaire brothers known for backing conservative causes and Republican political candidates.
Ceryanec confirmed on the conference call that Koch Equity Development is backing the deal with a $650 million investment. In the press release announcing the acquisition of Time, Meredith officials said the Koch brothers “will have no influence on Meredith’s editorial or managerial operations.” The Des Moines-based Meredith Corporation was founded in 1902. Some of the media company’s popular magazines include Better Homes & Gardens, Parents and Family Circle. Meredith will now take control of other big titles such as People, Sports Illustrated, Fortune and Time.
“We expect the transaction to close during the first quarter of calendar 2018, subject to customer closing conditions and regulatory approvals,” Ceryanec said.