The publishing house, including Meredith, People, EW, Better Homes and Gardens, and Insight, will become part of DotDash, the digital publishing division of Barry Dealer’s IAC Holding Company, under the proposed takeover agreement. The terms give the deal an enterprise value of about .7 2.7 billion.
Under the deal, DotDash will acquire Meredith in a cash transaction at a purchase price of 42.18 per share. The transaction is expected to close by 2021. The proposed deal does not include Meredith’s local TV business, which the company signed earlier this year. Billion agreed to sell to Gray Television for billions of dollars.
The combined company is DotDash Meredith and DotDash CEO Neil Vogel. Asked if cuts were expected as a result of the merger, an IS spokesman said: “We are not paying attention at the moment. It’s a growth story and we’re thrilled with the opportunity ahead of DotDash Meredith.
By itself, DotDash currently reaches about 100 million online subscribers monthly. The combined company will reach 175 million online consumers monthly, of which 95% are U.S. women, according to the companies.
“The Meredith family is extremely proud of what the company has achieved over the past 120 years, a direct reflection of our dedicated staff,” said Mel Meredith Frazier, vice chairman of Meredith’s board of directors, in a statement. -It has enriched the lives of generations of Americans. “
DotDash, formerly known as About.com, was bought by the IAC in 2012 from the New York Times for 300 million. DotDash has 14 brands across health, finance, lifestyle, food and beauty – which it claims are growing rapidly in their categories – including Verwell, Investopedia, The Balance, The Spruce, Simply Recipe, Sirius It’s, Birdie, Liquor.com , Trihugar and Brides. In 2020, DotDash earned 21 214 million in revenue and 66 66 million in consolidated earnings before interest, taxes, depreciation and repayments.
“We have often had the opportunity to digitally transform business and industry: travel, ticketing, dating, home services and now publishing. Meredith is already seeing record digital growth and we think DotDash can help accelerate that growth, ”IAC chief executive Joey Levine said in a statement.
In addition to a larger audience scale, DotDash and Meredith will result in more diverse businesses overall, according to the companies. The deal combines Meredith’s advertising capabilities and first-party data with DotDash’s ecommerce and performance marketing skills. Over the past 12 months, companies together have generated more than $ 1 billion in advertising revenue while their ecommerce capabilities have sold more than 1 1 billion to retail partners.
“Our digital business is growing rapidly, surpassing our magazine sales for the first time in the company’s history,” said Tom Harty, chairman and CEO of Meredith. “Meredith is a game-changer for the industry, combining first-party data with the famous cross-platform brands, creative content and DotDash’s digital first brands. Nowhere else will you find such a premium portfolio of media resources under one roof. We are thrilled to be joining forces to accelerate Meredith’s digital future. ”
Founded in 1902, Meredith closed Time Inc. for 8 1.85 billion (excluding debt) in 2018, funded by politically conservative brothers Charles and David Koch. Meredith has since sold Time Magazine (to Salesforce CEO Mark Benioff), as well as Sports Illustrated, Fortune and Money.