×
You will be redirected back to your article in seconds

Time Inc., Meredith Shares Rise After Mega-Deal Announced

Investors sent the stocks of both Time Inc. and Meredith up Monday, after the companies’ announcement Sunday evening that Meredith reached an agreement to acquire Time Inc.

Shares of Time Inc., not surprisingly, opened up 9.2% at $18.45 per share and hovered around there through morning trading. Wall Street responded enthusiastically to Meredith’s move, pushing the stock up as much as 16% Monday, before settling down in midday trading to about 10% over the media stock’s previous closing price.

Meredith’s bid for Time Inc. is for $18.50 per share, with the deal valued at $1.85 billion excluding debt. The companies expect the transaction to close in the first quarter of 2018, with the merged entity expected to yield $400 million-$500 million in cost synergies in the first two years.

The proposed all-cash deal is backed by $650 million from Koch Equity Development, the investment arm of Koch Industries, an industrial conglomerate headed by politically conservative multi-billionaire brothers Charles and David Koch. Meredith has taken pains to emphasize that the Koch group will have “no influence on Meredith’s editorial or managerial operations” with the financing, nor will Koch Equity Development have a seat on the company’s board.

Despite Wall Street’s bullishness about the combo, there remain big questions of how well Meredith and Time Inc. will be able to fuse their operations — especially given their divergent corporate cultures.

Meredith, based in Des Moines, Iowa, has cultivated a stable of family-friendly brands like Better Homes & Gardens, Parents and Family Circle, along with 17 TV stations across the U.S. For its part, Time Inc. has been a mainstay of New York City’s media landscape for nearly 100 years, with flashier brands that include People, Time, Sports Illustrated, Entertainment Weekly and Fortune.

More Digital

  • Kathreen Khavari

    Kathreen Khavari Tapped by Refinery29 for 'Embrace' Comedy Pilot

    Refinery29 will begin production in 2019 on “Embrace,” a pilot from writing duo Kathreen Khavari (“Big Little Lies”) and Chuck Neal. “Embrace” will star Khavari as she comes up with an unconventional solution to prevent her Iranian immigrant parents from having to move back to Iran. Refinery29 bills the show, set in Khavari’s hometown of [...]

  • Outlander Season 4

    Starz Available for $5 a Month for Three Months Through the Holidays

    Starz is having an online holiday sale: The premium cable network is selling three months of its online streaming service for $5 per month, down from the regular price of $8.99 per month. The offer is available to new users who sign up until the end of December. Subscribers also get a 7-day free trial, [...]

  • Meg Whitman and Jeffrey Katzenberg Strictly

    Listen: Jeffrey Katzenberg, Meg Whitman Go Long on Short-Form Entertainment

    One is a legend in the media business, the other in the tech world. But together Jeffrey Katzenberg and Meg Whitman are intent on bringing the best of both worlds together for their ambitious new venture: Quibi. On the latest episode of the Variety podcast Strictly Business, the dynamic duo shared their battle plan to [...]

  • Alfonso Cuaron, Yalitza Aparicio, Marina de

    Alfonso Cuaron Says 'Roma' Is Better in Theaters

    Director Alfonso Cuaron opted to work with Netflix for his latest film “Roma,” but the decorated filmmaker isn’t discounting the importance of a big-screen viewing. “The complete experience of ‘Roma’ is unquestionably in a movie theater,” Cuaron said Monday night at the Egyptian Theater in Los Angeles for the premiere of “Roma.”  The streaming giant did [...]

  • virtual reality

    How VR Is Being Used to Help Children With Learning Disabilities, Autism

    The United States Department of Education is betting on virtual reality to help students with high-functioning autism and learning disabilities in schools across the country. This month the Office of Special Education and Programs announced its investment of $2.5 million toward a new program that will use VR to nurture social skills in students with [...]

More From Our Brands

Access exclusive content