Time Inc. to be acquired by company backed by Koch brothers

The following article by Brett Samuels was posted on the Hill website November 26, 2017:

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Meredith Corp., a publisher backed by GOP mega-donors Charles and David Koch, announced on Sunday it was buying Time Inc. for $1.8 billion, according to multiple reports.

The publisher said it would acquire Time’s outstanding shares for $18.50 per share, Reuters reported.

The two companies said the deal had been unanimously approved by their respective boards and would close sometime early next year, according to the Associated Press.

“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,” Meredith CEO Stephen Lacy said in a statement, according to Reuters.

The New York Times had reported earlier on Sunday that a deal could be announced as soon as Monday. According to the Times report, the Koch brothers would infuse $600 million into Meredith through Koch Equity Development.

Time Inc. publishes magazines such as Time, Sports Illustrated and People. Meredith publishes Family Circle, Martha Stewart Living and Better Homes and Gardens.

The two companies were reportedly in talks about a sale earlier this year, but couldn’t agree to terms in April.

The Koch brothers refused to back President Trump during his election campaign, but have improved relations with his administration in 2017, meeting with top officials including Vice President Pence.

Koch Industries is privately held and currently ranks as the second-largest private company in the U.S. Its annual revenues exceed $115 billion via interests primarily in the energy and chemicals arenas.

This story was updated at 6:50 p.m.