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SI's parent company Time will be bought by Meredith

28 November 2017

The Journal reported that Iowa-based Meredith has agreed to pay $18.50 a share in cash - a 46% premium from Time's stock at the time acquisition talks were first reported on November 15.

The Koch brothers-known for their conservative politics-will hold no editorial or management control over the publications owned by the Meredith Corporation.

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Time Inc., the steward of some of the country's most circulated and storied magazine brands, will be sold to the lifestyle-magazine publisher Meredith Corp., the companies announced Sunday. The deal is a coup for Meredith, which held unsuccessful talks to buy Time earlier this year and in 2013. Koch Equity Development, the brothers' investment firm, is putting up $650 million to receive preferred equity in the deal. Its most popular magazine, Better Homes & Gardens, has a circulation of 7.7 million, the fourth-highest for a magazine in the United States, according to the Magazine Publishers of America.

Time Inc was spun off from media and entertainment giant Time Warner, which was seeking to shed its journalism assets. The siblings fund a non-profit advocacy group called Americans for Prosperity to back conservative candidates and positions and though the Koch brothers were critical of President Donald Trump's campaign tactics, they have recently become closer with the administration to support its tax reform efforts. It also runs 17 local news stations in 12 markets.

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Meredith which will take over Time magazines Sports Illustated, Time, People and Fortune said the Koches will have no involvement in its operation and won't have a seat on its board.

Meredith said the first two years after the acquisition are expected to generate cost synergies of $400 million to $500 million, which is probably not reassuring to Time Inc. employees considering its multiple layoff rounds this year.

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The deal is valued at $1.84 billion based on the offering price and number of shares of Time outstanding on September 30.

SI's parent company Time will be bought by Meredith