Time Magazine is sold in Koch-backed deal

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US magazine publisher Time Inc. will be bought by the rival media company Meredith Corporation for $2.8 million (£2.1 million).

The agreement is backed by the billionaire brothers Charles and David Koch, who are known to financially support conservative causes.

Meredith is one of Iowa publisher and broadcaster, which has made two previous unsuccessful bids to the Time.

The time has struggled with declining advertising revenues, since it separated from Time Warner in the year 2014.

In November, Time in the third quarter, the revenue slid 9.5% to $679m, marking the sixth consecutive quarter, the editor fell below analysts ‘ expectations.

“This transaction is in cash, and the immediate, certain value it provides, is in the best interest of the company and its shareholders,” the Time of President John Fahey said in a statement.

Meredith is the owner of the publications ” Family Circle and Better Homes and Gardens, as well as local television stations in the united states.

The company said that the agreement will give almost $700 million in digital advertising revenues and “unparalleled reach” the value of the old customers, in their twenties and thirties.’Political activism’

As part of the agreement, Meredith has secured $650m of the Koch brothers’ private equity arm, Koch Equity Development.

The two brothers run Koch Industries, which is one of the world’s largest private companies, with interests ranging from pipes to paper towels.

According to the Koch Industries website, “for millions of Americans, the words “Koch brothers” and “political activism” go hand in hand”.

For a long time we have advocated economically conservative candidates and causes, but have also pushed for reform of the criminal justice system and made large donations to the American Civil Liberties Union.

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Your participation in the media the deal is likely to raise concerns that they will use their investment to influence.

A suggestion that you might try to acquire the Los Angeles Times and the Chicago Tribune in 2013 led to petitions and protests from readers concerned about their intentions.

However, Meredith said that the Koch brothers will not be given a seat on the board of Time Inc., and does not have any managerial or editorial input. Person of the year

In addition to Time, the company also publishes People, Sports Illustrated, Entertainment Weekly and Fortune magazines.

Meredith says that the acquisition will give its brand with a number of readers of $ 135 million and paid circulation of almost 60 million dollars.

“We believe this acquisition represents a transformative and financially compelling growth opportunity for Meredith Corporation and to increase shareholder value over time,” Meredith chief executive Stephen Lacy said in a statement.

Even if Time Inc has struggled in recent years, its namesake magazine still has significant cultural influence.
Donald Trump is the Time magazine Person of the Year
Time Inc shares fall in debut after Time Warner split

An example is their “person of the year”, which is now in its 90th anniversary year.

The problem, recognizes the person who “for better or for worse… has done the most to influence the events of the year.”

Previous winners have included almost every time the president of the united states, Queen Elizabeth, Pope John Paul II and Mahatma Gandhi.

More controversially, Joseph Stalin, and Adolf Hitler also received the recognition.

This year the choice of headlines last week, after the us President, Donald Trump said that he expected to be given the title for the second consecutive year.

End of the post to Twitter by @realDonaldTrump

Time magazine, disputed the president’s claim, and said it did not comment on the cover story before publication.