Meredith to buy Time Inc. for $1.85 billion

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Under the terms of the agreement, Meredith will commence a tender offer to acquire all the issued and outstanding shares of Time Inc. common stock for $18.50 per share in cash. Meredith said they will have no influence in the combined company.

Charles and David Koch are among the new owners of the recently sold Time Inc., the company that owns and publishes over 100 magazine brands, including Time Magazine.

Meredith had expressed interest in buying Time earlier this year and then walked away because it could not secure the necessary financing.

Though Time was reported in October to be considering cost-cutting moves, including reducing publication schedules for some of its titles, it still has clout. "THe difference now is the Koch brothers money".

"I am proud of our accomplishments and thank the talented teams across the company for their extraordinary work, relentless commitment, and passion", Time Inc.

$650 million of the equity raised stems from Conservative billionaires the Koch brothers (Koch Equity Development), something that has already lead Meredith to play down their involvement. "KED's non-controlling, preferred equity investment underscores a strong belief in Meredith's strength as a business operator, its strategies, and its ability to unlock significant value from the Time Inc. acquisition". The Meredith Corporation already owns Family Circle, AllRecipes and Better Homes and Gardens. 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. It also runs 17 local news stations in 12 markets.

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

Meredith's portfolio includes 17 local television stations in 12 USA markets, as well as publications such as Better Homes & Gardens, Allrecipes, Parents and Shape.

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