The Koch brothers-known for their conservative politics-will hold no editorial or management control over the publications owned by the Meredith Corporation.More news: Yet another train derailment in Uttar Pradesh leaves 3 dead, 9 injured
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.More news: Family Attempting to Reconvert Hadiya to Hinduism, Alleges Husband Shafin Jahan
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.More news: Ohio State Rallies Past Michigan; JT Barrett Injured in Sideline Incident
The deal is valued at $1.84 billion based on the offering price and number of shares of Time outstanding on September 30.
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