Meredith Corporation announced yesterday that they had entered into a binding agreement with Time Inc. to acquire all their outstanding shares for $ 18.50 per share in an all-cash transaction that was valued at $2.8 billion. Both the Boards of Directors of Meredith and Time Inc unanimously agreed to the transaction which should be concluded in the first quarter of 2018.
“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,” said Meredith Corporation Chairman and CEO Stephen M. Lacy.
“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.”
This new partnership will further a diversified media rich and marketing company that will be worth the combined revenues from last year, which total $4.8 billion. This includes $2.7 billion of total advertising revenues with nearly $700 million of digital advertising revenues and adjusted EBITDA of $800 million. In addition Meredith is expecting generating cost synergies of $400 million to $500 million within the first two years of its operation.
“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,” said Meredith President and Chief Operating Officer Tom Harty. “When you combine our strong local television business – which has grown operating profit 15 percent annually over the last five years – with the trusted, premium multiplatform content creation of Meredith and Time Inc., it creates a powerful media company serving consumers and advertisers alike. We look forward to completing the transaction; welcoming the Time Inc. employees to Meredith; delivering on our pledge to achieve identified synergies; and growing shareholder value.”