Meredith Corp is buying Time Inc for about $1.8bn (£1.35bn), a deal CEO Stephen Lacy called "a transformative and financially compelling growth opportunity" that joins two giant magazine companies. 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.
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 provided a window into world events, sometimes with striking photography. Meredith said they will have no influence in the combined company.
The transaction was approved by the Boards of Directors of Meredith and Time Inc. The company was founded by Henry R. Luce and Briton Hadden, who had worked together in their college days at the Yale Daily News.
Time Inc. owns and publishes over a hundred magazines, including its namesake Time, in addition to other major publications such as People, Sports Illustrated, Entertainment Weekly and Fortune magazines.
"Get ready for next year's new Time Magazine feature "Person of the Last & Next Century" Ayn Rand", Boyle tweeted.
Meredith, based in Des Moines, Iowa, is a Midwestern publisher through and through.
However, in an attempt to quell the conflict of interest concerns, Meredith has stated the two libertarian brothers will have zero impact on the editorial decisions of the publications. He soon began the still-thriving Better Homes and Gardens, which has a circulation of more than seven million.
It is clear that Time's numbers have been continually declining in the past few years, as the media group has missed their financial goals in six straight quarters.
"Meredith said in its press release that the Koch brothers will have no influence on how the company is run or its editorial content: "[Koch Equity Development] will not have a seat on the Meredith Board and will have no influence on Meredith's editorial or managerial operations.