The Meredith Corporation announced Sunday night it purchased Time Magazine, with a significant investment from the Koch brothers helping the acquisition along.
Meredith announced the deal would be an all-cash transaction worth $2.8 billion. The deal has been unanimously approved by both companies’ boards of directors and is expected to be completed in the first quarter of 2018.
"We are creating a premier media company serving nearly 200 million American consumers across industry-leading digital, television, print, video, mobile, and social platforms positioned for growth," said Meredith Corporation Chairman and CEO Stephen M. Lacy.
"We are adding the rich content-creation capabilities of some of the media industry's strongest national brands to a powerful local television business that is generating record earnings, offering advertisers and marketers unparalleled reach to American adults. We are also creating a powerful digital media business with 170 million monthly unique visitors in the U.S. and over 10 billion annual video views, enhancing Meredith's leadership position in reaching Millennials."
The transaction is financed in part by $650 million from Koch Equity Development, the investment arm of Koch Industries. The company is owned by David and Charles Koch, the mega-billionaires who are also major backers of Republican candidates.
Meredith sought to assuage fears that the Kochs would be directing the editorial content of Time magazine and other Time Inc. owned properties.
“KED will not have a seat on the Meredith Board and will have no influence on Meredith's editorial or managerial operations,” the statement read. “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. Rothschild, Inc. and Credit Suisse are serving as financial advisors to KED and Jones Day is serving as legal counsel.”