U.S. media company Meredith will buy Time, the publisher of People, Sports Illustrated and Fortune magazines, in a $1.84 billion all-cash deal backed by conservative billionaire brothers Charles and David Koch. Fred Katayama reports.
Big marriage of magazines. U.S. media company Meredith will buy Time Inc for almost $3 billion, including debt. New York - based Time Inc publishes popular magazines such as Time, People and Sports Illustrated. Des Moines - based Meredith's portfolio includes Better Homes & Gardens, Shape various digital outlets, and local tv stations. Both stocks skyrocketed on the news. Reuters correspondent Liana Baker is covering the story. She says investors see this deal as bringing a lot of synergies and cost savings. (SOUNDBITE) LIANA BAKER, CORRESPONDENT, REUTERS (ENGLISH) SAYING: "Meredith has been trying to explore options for a while. Time Inc however has been harder hit financially. They've had an activist investor come in and out of the stock, Jana Partners. They've had a CEO change. Things have been hard for Time Inc since they were spun off from Time Warner in 2014." The deal was made possible by a $650 million injection from billionaire brothers Charles and David Koch. According to Meredith, the Kochs will not have a seat on its board. They also won't have any influence on editorial or managerial operations.