In an all cash deal, Iowa-based Meredith Corporation is buying Time, Inc. for 2.8 billion dollars. Meredith Corp. is a media company with both magazine and broadcast facilities.
According to Meredith chairman-C.E.O. Stephen Lacy the merger will allow the company to reach some 200 million consumers.
Meredith Corporation’s acquisition of Time Inc. is said to be backed by the Koch brothers which suggests Time, Inc.’s content will reflect a more conservative point of view.
According to reports, the price settled on in the deal came in at 46 per cent higher than the closing price of 18.50 per share. Lacy indicated the combined worth of the new company will exceed 4.8 billion dollars with expected yearly profits of 800 million. The combination of properties will include a company-wide streamlining expected to save the company as much as 500 million.