Koch Brothers Among New Owners of 'Time Magazine'

Javier Stokes
November 28, 2017

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

Conservative billionaire brothers Charles and David Koch are kicking in $600 million for the purchase, according to the New York Times, although neither Meredith nor Time acknowledged the contribution in their press releases. Reuters reports that the deal will be worth $1.84 billion.

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

"Meredith wanted to buy Time Inc. back in 2012, but didn't want Time magazine", former Time magazine Editor Richard Stengel tweeted following the deal's announcement this morning.

AC Milan sack manager Vincenzo Montella
It is now in seventh place in the Serie A standings and is coming off a draw against Torino on Sunday. Gattuso , a former AC Milan midfielder, steps up from managing the club's youth side.

Meredith's deal is backed by $650 million from Koch Equity Development, the investment arm of Koch Industries, an industrial conglomerate rooted in the oil and gas business. CEO Rich Battista said in a statement.

The other Time brands have also attempted to delve into video and digital, but like SI, haven't been caught on.

Rothschild also worked with Solera Holdings Inc.in a deal a year ago in which the Koch company provided $800 million of preferred equity. 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 companies expect the transaction to close in the first quarter of 2018, with the merged entity expected to yield $400 million-$500 million in cost synergies in the first two years.

The transaction will create a diversified media and marketing company with calendar 2016 combined revenues of $4.8 billion - including $2.7 billion of total advertising revenues with almost $700 million of digital advertising revenues - and adjusted EBITDA of $800 million. 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.

Other reports by

Discuss This Article