Meredith Corp.’s revived bid to purchase Time Inc. has gotten the blessing of Billionaire brothers Charles and David Koch. This was revealed by a source that is close to the situation.
The brothers have agreed to back the offer tabled by Meredith, with the bid containing an equity that is worth over $500 million, according to the source. This news confirms the reports that were posted by New York Times earlier this month.
After the revelation by the source, an email was sent to Koch Industries Inc. but the email wasn’t answered. The spokesperson of Time was contacted but declined to make any comment on the issue while an email that was sent to Meredith wasn’t replied due to the mail sent after business hours.
If a merger should occur, then it would see the two magazines team up to boost their sales. At the moment, Time is struggling to rebrand itself with their once bubbling print advertisement drying up as digital advertisement are now favored, with Google and Facebook taking the lion’s share of money spent in the advertisement. The management of the magazine has been working for months in a bid to restructure the company, with their senior management replaced. This move was done with hopes that advertisers would be persuaded to put in more money into their firm. The company’s iconic publications include Fortune, Sports Illustrated, and People.
Any deal the Times has with the Kochs will be seen as a political move with their influence on the news media. The billionaire brothers have been working for decades and have a network of political donors on their contact list.
This isn’t the first time that Meredith had attempted to take over Time, with two previous attempts made from 2013. Meredith who are the publishers of amazing pieces like Better Homes & Gardens, Martha Stewart Living, Shape and Parents was one of the companies that made offers for Time earlier this year, though the proposal was later abandoned. Initially, Meredith offered to acquire Time for as much as $2 billion before later lowering their offer.
The shares of Time closed at $12.65 in NYSE on Wednesday, with the publishing firm having a market cap of $1.26 billion. Meredith, on the other hand, has a market value of $2.42 billion.