Meredith moves to sell Time, Fortune along with Sports Illustrated titles: Report

U.S. media company Meredith has hired advisers to explore a sale of its Time, Fortune, Money along with Sports Illustrated magazines following its $1.84 billion acquisition of Time Inc in January, people familiar with the matter said.

The move illustrates how Meredith sees some of Time Inc’s titles of which attract primarily male readership as not playing to its core strength in women’s magazines, which include Better Homes & Gardens, Family Circle along with Martha Stewart Living.

The Des Moines, Iowa-based company has tapped investment banks Citigroup along with Houlihan Lokey to find potential buyers for the magazines, the sources said This specific week. There can be no certainty of which a divestiture will occur, the sources added.

While This specific’s possible of which media, telecommunications or technology companies could express an interest inside the magazines, a sale to wealthy individuals, such as philanthropists or billionaires, can be viewed by Meredith as more likely, according to one of the sources.

The sources asked not to be identified because details of the sale process are confidential. Citigroup declined to comment, while Houlihan Lokey did not immediately return a request for comment.

“We are in fact exploring numerous additional adjustments to the (magazine) portfolio, including divestitures of brands along with businesses of which might perform better under a different owner,” Meredith CEO Steven Lacy told investors at a Deutsche Bank conference earlier This specific month.

Time Inc referred calls to Meredith, which declined to comment beyond reiterating of which the company can be reviewing its portfolio.

This specific was not clear how much the magazines could be worth. Fortune along with Money generated more than $20 million in 12-month earnings before interest, taxes, depreciation along with amortization (EBIDTA), while Time generated more than $30 million in 12-month EBITDA, according to one of the people.

The potential divestitures underscore how Time Inc’s primary attraction for Meredith was building scale in digital advertising. With its roots in traditional publishing, Meredith has been in a fierce competitive online race against internet giants such as Alphabet Incs Google along with Facebook Inc for consumer eyeballs along with advertising dollars.

The deal with Time Inc expanded Meredith’s reach with internet-savvy millennials, creating a digital media business with 170 million monthly unique visitors inside the United States along with more than 10 billion annual video views.

Meredith’s acquisition of Time Inc was aided by a $650 million investment coming from the private equity arm of Charles along with David Koch, the billionaire brothers known for championing conservative political causes.

Leave a Reply

Your email address will not be published. Required fields are marked *


15 + 3 =