The Short:
On Sunday night Meredith Corp. concluded a sale agreement for an all-cash purchase of Time Inc. for nearly $3 billion, backed by a $650 million infusion by billionaire brothers Charles G. and David H. Koch.
The Long:
Meredith, which owns Family Circle, Better Homes and Gardens and AllRecipes, has a vastly different audience from the iconic brands of Time Inc., which include Time, Sports Illustrated and People.
Even their operating styles are poles apart, with Time being a hardcore NYC brand and Meredith eschewing the Big Apple for the calmer climes of Des Moines, Iowa.
While Time Inc. kept stumbling over the years, Meredith grew from strength to strength, even buying local TV stations to help it stand strong against the assault on print media launched by fast-growing digital brands that more suitably address the needs of modern media consumption.
The Koch brothers’ involvement only represents a passive investment. Koch Equity Development will not have a seat on Meredith’s Board of Directors, nor will it have any “influence on Meredith’s editorial or managerial operations.”
In 2013, a similar bid by Meredith fell through because the company did not want to take on some of Time’s most popular titles, including Time, Sports Illustrated and Fortune.
Earlier this year, Meredith was forced to walk away from another attempt, one of the reasons being it could not secure adequate financing. The Kochs seem to have filled that gap for Meredith, allowing it to sign the sale agreement with Time Inc. this Sunday.
+++ + +++
