Economy

SI's parent company Time will be bought by Meredith

SI's parent company Time will be bought by Meredith

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 brothers, who have never owned a media company, "would not have any operational control over the company", sources told The Times, but others warned that they would use the outlets to "promote their brand of conservatism". The deal is a coup for Meredith, which held unsuccessful talks to buy Time earlier this year and in 2013.

Meredith Corp agreed to acquire Time Inc for US$2.8 billion (S$3.8 billion) including debt, swallowing the once-mighty home of Fortune and Sports Illustrated after the Internet age wreaked havoc on even the most prestigious magazine titles.

Prior to the announcement, Meredith had just $28m in cash on hand, according to its latest quarterly report.

The acquisition also gives the billionaire Koch brothers, who agreed to support Meredith's offer with an equity injection of US$650 million, a foothold in the struggling magazine industry.

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Media watchdogs have expressed concern over the potential influence of the Koch brothers on Time Inc. The brothers are supporters of libertarian and conservative causes and especially generous with funding for climate denial.

Rothschild also worked with Solera Holdings Inc.in a deal past year in which the Koch company provided $800 million of preferred equity.

Time Inc. was bought by Meredith Corporation for $2.8 billion. It also runs 17 local news stations in 12 markets.

The deal gives Meredith, publisher of Better Homes & Gardens, a larger audience at a time when publishers need to get bigger to compete with Facebook and Google in advertising.

Meredith will pay $18.50 per share in cash for Time's almost 100 million outstanding shares.