Meredith Corp., the Iowa-based media company, will purchase Time Inc. for $18.50 per share in an all-cash transaction valued at $2.8 billion, according to a statement. Roughly one quarter of the deal value ($650 million) is being financed by Koch Equity Development (KED), the investment arm of Koch Industries, run by Republican mega-donors Charles and David Koch.
Why it matters: Backing from the Koch brothers will likely prompt questions about the editorial independence of Time Inc.’s news properties, like Time Magazine and Fortune. In a statement, Meredith Corporation said KED will not have a seat on the Meredith Board and will have “no influence on Meredith’s editorial or managerial operations.”
Aside from any potential political incentives, a merger also helps Meredith expand its lifestyle content footprint. (Meredith owns several lifestyle magazines, like Better Homes and Gardens and Country Life, while Time Inc. owns People and Sports Illustrated.)
The buildup: Time Inc. rejected a Meredith Inc. bid earlier this year — its second major takeover rejection since last November, when it turned down at $1.8 billion bid from an investor group that included billionaire Edgar Bronfman Jr.
Meredith Corp. is buying Time Inc., the iconic magazine publisher, for $2.8 billion, the companies announced today.Worth noting: Meredith is getting $650 million in financing from Koch Equity Development, an investment arm of the conservative Koch brothers. The Koch’s firm “will not have a seat on t…