US Time Publishing sold to Mededith for nearly 2 billion
The struggling Time publishing company is being sold to its U.S. rival Meredith for $1.84 billion. The Iowa-based company is financially backed by billionaire brothers Charles and David Koch.
Including all debts, Time is valued at 2.8 billion dollars, as the companies announced on Sunday. As a result of the takeover, the titles of both companies together will reach 135 million readers. The deal is expected to be completed in the first three months of 2018.
Time was spun off from the Time Warner media and entertainment group in 2014. Alongside the magazine of the same name, the publishing house is responsible for Sports Illustrated and Fortune known. However, the company is weakening because circulation is shrinking and advertising customers are reorienting themselves.
In the third quarter, turnover slumped by almost ten percent to 679 million dollars. Time management is responding to this with cost reductions, a new digital strategy and is considering the sale of individual titles. Meredith expects savings of 400 to 500 million dollars in the first two years after the transaction. The takeover is a coup for the media group.
Money from patrons
Meredith had already failed in negotiations to buy Time this year and in 2013. Meredith also announced that the Koch industrial family would act as a financial backer, but would have no say in journalistic issues and management decisions.
In the past, the Kochs, who are among the richest people in the world, were interested in buying the newspapers Los Angeles Times and Chicago Tribune can be recognized. Meredith distributes magazines for homeowners and gardening enthusiasts as well as magazines on family topics. The group is valued at 2.7 billion dollars on the stock exchange. Time shares last cost 16.90 dollars on Wall Street. Meredith will now pay 18.50 dollars per share in cash. (SDA)
