Welcome back!
Some of us are starting the post-Thanksgiving work week with a bit of a bang.
Last night, Time Inc., the publisher of Fortune, Time, Essence, Sports Illustrated, People, and more, completed a deal to sell itself to Meredith, the Iowa-based publisher of Better Homes and Garden, Family Circle, Martha Stewart Living, and Allrecipes, among others.
“When combined, the Meredith and Time brands will have a readership of 135 million people and paid circulation of nearly 60 million,” says Fortune. “The deal also will expand Meredith‘s reach with internet-savvy millennials, creating a digital media business with 170 million monthly unique visitors in the United States and more than 10 billion annual video views.”
The news is significant, with massive implications for the magazine category and the media business in general. “The merger will allow for sizable cost saving synergies between the two [companies]. It also reflects the need for scale in digital media, where publishers have had to fight the giants—Facebook and Google—for advertising dollars,” says Time Inc.’s content chief Alan Murray in today’s CEO Daily.
The $1.8 billion cash deal was backed by the private equity arm of the conservative billionaire Koch brothers, which raised more than a few eyebrows, at least initially.
While yesterday’s announcement said that the Kochs will have no seats on the board, or a say in editorial or management going forward, it’s still unclear which of Time Inc.’s many brands will make the actual or symbolic transition to Des Moines, Meredith’s stomping grounds.
To riff on Alan’s similar statement, I have no doubt that our new owners will be quick to recognize the unmatched value that raceAhead offers.
So until further notice, let’s keep on doing the work.