The Once Mighty Time, Inc. Gobbled Up By GOP Backed Cash
$MDP, $TIME, $TWX
Des Moines, Iowa based Meredith Corp. (NYSE:MDP) agreed to acquire Time Inc. (NYSE:TIME) for $2.8-B including debt, swallowing the once-mighty home of Fortune and Sports Illustrated after the internet age wreaked havoc on the most prestigious magazine titles.
The 18.50/share offer is all-cash one, Meredith said in a statement Sunday.
The deal gives Meredith, publisher of Better Homes & Gardens, a larger audience at a time when publishers need to get bigger to compete with Facebook (NASDAQ:FB) and Google (NASDAQ:GOOGL) in advertising.
The acquisition also gives the billionaire Koch Brothers, who agreed to support Meredith’s offer with an equity injection of $650-M, a foothold in the US magazine industry.
Koch Equity Development will not have a seat on Meredith’s board or have influence on its editorial or managerial operations, according to the statement.
The Kochs’ involvement may raise new questions about political influence on the news media, especially a hallowed journalistic outlet like Time Magazine, founded in Y 1923 and originally run by Henry Luce.
The Koch Brothers have spent decades building a network of wealthy political donors who pledge money to conservative causes and their advocacy groups.
New York-based Time has struggled to reinvent itself as print advertising dries up and the Lion’s share of digital advertising dollars goes to Facebook Inc. and Alphabet Inc.’s Google.
The magazine owner has spent months restructuring its business, trying to sell some magazines, replacing senior management and hoping to persuade advertisers to pour money into its titles it failed.
This was the 3rd time Meredith moved acquire Time since Y 2013. Based in Des Moines, Iowa,
Once part of Time Warner Inc. (NYSE:TWX), Time Inc. was spun out as a separate unit in Y 2014 after talks to merge the division with Meredith collapsed the 1st time.
In May of this year, Time Inc. announced plans to sell some magazines or other properties as it tried to push ahead with a digital strategy, it failed.
|NYSE:MDP||61 .0||24 November 2017||0.85||60.25||61.2||60.2||123,300|
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