Des Moines-based Meredith announces deal to buy Time Inc

Des Moines-based Meredith announces deal to buy Time Inc

Des Moines-based Meredith announces deal to buy Time Inc

The Kochs seem to have filled that gap for Meredith, allowing it to sign the sale agreement with Time Inc. this Sunday. It said it is using $3.55bn in financing commitments from a variety of lenders and a $650mn preferred equity from Koch Equity Development, an investment arm of Koch Industries, to finance the deal and pay down existing debt.

Meredith will pay $18.50 per share in cash for Time's almost 100 million outstanding shares. The boards of both companies finalised the deal on Sunday evening. The deal is expected to close within the first quarter of 2018.

The deal could represent the beginning of the end for one of the country's most celebrated magazine publishers, whose titles commanded the attention of global leaders and chronicled world events, sometimes with striking photography. On Friday, Time closed at $16.90 in trading on the New York Stock Exchange. The company was founded by Henry R. Luce and Briton Hadden, who had worked together in their college days at the Yale Daily News.

Meredith, based in Des Moines, owns Shape, Parents and other mass-market titles.

Meredith has attempted to purchase Time before in 2013, but that was unsuccessful. He soon began the still-thriving Better Homes and Gardens, which has a circulation of more than 7 million. At the time, Meredith was considered a frontrunner in the bidding. Bringing Time's brands to Meredith will bolster the company's roster of publications.

Rothschild & Co.'s renewed push in the getting a boost from the Koch brothers. The company's role in the transaction, he said, was similar to that of a bank. The companies in which it has announced investments are fairly low profile, such as Guardian, a leading manufacturer of glass products, and ADT/Protection One, the home security company.

"We were looking for some support, but in all sincerity, not looking for a lot of help in running the business". She said investing in financially troubled print media doesn't make any sense as a business decision - only as a means to influence coverage.

Meredith which will take over Time magazines Sports Illustated, Time, People and Fortune said the Koches will have no involvement in its operation and won't have a seat on its board.

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