Time Magazine to be sold in for $2.8 million

by Frankie Norman November 28, 2017, 0:47
Time Magazine to be sold in for $2.8 million

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

USA media company Meredith Corp said on Sunday it will buy Time Inc, the publisher of Sports Illustrated and Fortune magazines, in a $1.84 billion allcash deal backed by conservative billionaire brothers Charles and David Koch.

Meredith is backed by $650 million from Koch Equity Development, the investment arm of Koch Industries.

Shares of Time Inc., not surprisingly, opened up 9.2% at $18.45 per share and hovered around there through morning trading. Meredith approached Time again earlier this year, but those discussions also stalled when Meredith reportedly failed to secure enough bank financing for the acquisition. 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. Fears have been raised that the source of the funding could be of a political interest, however Meredith claims that there will be no seat on the board as a result of the funding and that editorial will remain out of reach of influence. This was the third time Meredith attempted to acquire Time since 2013.

Meredith's brands include Better Homes & Gardens, Allrecipes, Parents and Shape. Meredith expects it will save up to $500m in costs in the first two years of operation and plans to "aggressively pay down" debt by 2020. The publishing giant has a portfolio of 17 television stations in 12 markets, which reach an estimated 11% of USA households TVs.

Time, meanwhile, publishes magazines including Entertainment Weekly, Sports Illustrated and People.

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