Barry Diller’s IAC buys Meredith, magazine editor
NEW YORK (AP) – Barry Diller’s IAC acquires Meredith, one of the nation’s largest magazine companies and publisher of People, Southern Living and InStyle, in hopes of accelerating the digital shift as that the impression fades.
Dotdash from IAC, a collection of websites including Investopedia, Brides, Serious Eats and Simply Recipes, will join Meredith, the companies said on Wednesday. Dotdash CEO Neil Vogel will lead the group, which the companies say will reach more than 175 million people online. The deal is expected to be concluded by the end of the year. IAC pays $ 42.18 per share, funded by cash and debt, which values Meredith at around $ 2.7 billion.
It’s a big turnaround for Des Moines, Iowa-based Meredith, who just four years ago bought Time Inc. magazines for $ 1.8 billion in order to grow her own magazine business. . He proceeded to sell historic titles that didn’t fit his lifestyle-based company, like Time, Sports Illustrated, and Fortune. The pandemic has accelerated the decline of print ads, the IAC said in a presentation, and going forward, print will support the digital effort – a suggestion that some brands may stop their circulation. The company “will focus on the best titles,” IAC said.
Meredith, a longtime commercial presence in Iowa, also agreed to sell its TV channel business earlier this year in a $ 2.8 billion deal with Gray Television. A statement Wednesday from Meredith Vice President Mell Meredith Frazier said the Meredith family is proud of the company’s accomplishments over the past 120 years and that Dotdash Meredith will always be an “active member” of the Des Moines community. .
The companies did not immediately respond if there would be layoffs, as is often the case after acquisitions, or if Meredith’s operations remain in Iowa. In its presentation, IAC said it expects savings of up to $ 50 million in the first year of operation, and that cost reductions usually mean job cuts.
By TALI ARBEL
AP Technology Writer