Meredith brings with it a magazine portfolio that includes Better Homes & Gardens, Family Circle, allrecipes and Shape, while Time Inc. owns properties including Time, Sports Illustrated, People, Fortune and Entertainment Weekly.
If the deal goes through, it would finally mark success for Meredith in its third run at acquiring Time.
Conservative billionaire brothers Charles and David Koch are kicking in $600 million for the purchase, according to the New York Times, although neither Meredith nor Time acknowledged the contribution in their press releases. Time shares jumped 2% in after-hours trading Sunday, and Meredith rose 1.3%. And its revenue has dropped consistently over the past year and a half. Meredith said that Koch Equity Development, the investment arm of Koch Industries, will contribute $650 million in equity to help finance the deal.
"We are creating a premier media company serving almost 200 million American consumers across industry-leading digital, television, print, video, mobile and social platforms positioned for growth", Meredith CEO Stephen Lacy in a statement. CEO and President Rich Battista said in a statement.
The move to merge the companies has pushed the publisher up the ranks, enabling it to now take a place in the top ten digital media companies globally. (NYSE:TIME) that could be announced this week, Reuters reports.
The transaction is subject to customary closing conditions and regulatory approvals, including the tender of a majority of the outstanding shares of Time Inc. common stock and clearance under the Hart-Scott-Rodino Antitrust Improvements Act. Meredith will pay $18.50 per share of the publicly traded Time Inc. Time magazine responded on its own account that Trump didn't understand the selection process and several comics offered their own mocking tweets as well.