Time chairman John Fahey said the sale was in the best interests of the company and its shareholders, noting the price represented a 46% premium to the closing price of shares on 15 November, the day prior to media reports about the deal.
The Kochs - who made their fortune in Koch Industries which invests in a number of manufacturing companies - run a massive political operation that includes funding for a number of libertarian and conservative thinks-tanks and grassroots organizers, such as Citizens for a Sound Economy Citizens for a Sound Economy, Americans for Prosperity, and the Cato Institute.
Conservative billionaire brothers Charles and David Koch are kicking in $600 million for the purchase, according to the New York Times, although neither Meredith nor Time acknowledged the contribution in their press releases. Meredith said they will have no influence in the combined company.
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Time Inc.is about to be purchased by media giant Meredith Corp.
As it turns out, the Koch brothers are contributing more than that. "KED's non-controlling, preferred equity investment underscores a strong belief in Meredith's strength as a business operator, its strategies, and its ability to unlock significant value from the Time Inc. acquisition".
Meredith's portfolio includes 17 local television stations in 12 USA markets, as well as publications such as Better Homes & Gardens, Allrecipes, Parents and Shape. It has eschewed an expensive headquarters in Manhattan and maintained a diversified portfolio - the company also owns local television stations - that has allowed Meredith to better weather the economic storm that has faced print publishers. However, acquiring Time Inc with the help of the Koch brothers will give their media group access to a total readership of over 130 million and a subscription circulation of close to 60 million, per Reuters. Time shares jumped 2% in after-hours trading Sunday, and Meredith rose 1.3%. It is unclear how much influence the Kochs would have on Time, which includes Time magazine, People, Sports Illustrated and Entertainment Weekly among its stable of publications.