U.S. media group Meredith (NYSE: MDP) has reached a deal to acquire Time (NYSE: TIME), the U.S. publisher of Sports Illustrated and Fortune magazines, the company said Sunday evening.
Meredith said it had entered a binding agreement to acquire all outstanding shares of Time for $18.50 per share in an all-cash transaction valued at $2.8 billion. The transaction is expected to close during the first quarter of calendar 2018, the company said.
The acquisition is a coup for Meredith, which held unsuccessful talks to buy Time earlier this year as well as in 2013. Analysts have said that bulking up on publishing assets could give Meredith the scale required to spin off its broadcasting arm into a standalone company.
Meredith's bid for Time is backed by an affiliate of billionaire brothers Charles and David Koch.
The Kochs are known for their conservative views and views on economic freedom. They have previously expressed interest in buying media properties such as the Los Angeles Times and the Chicago Tribune in 2013.
Meredith, which publishes Better Homes & Gardens and Family Circle magazines, has a market capitalization of $2.7 billion. It tried to merge with Richmond, Virginia-based broadcaster Media General in 2015, but Nexstar Media Group ended up acquiring that company for $4.6 billion.
Time, which also publishes the eponymous current affairs magazine, has been struggling in an industry-wide decline in print media, as circulation shrinks and advertisers shift to digital platforms.
Meredith stock opened Monday up $6.25, or 10.3%, from Friday, to $67.25, while Time shares gained $1.55, or 9.2%, to $18.45
