Barry Diller’s IAC in talks to buy Meredith, publisher of People magazine, for $ 2.5 billion (Report)
Barry Diller’s InterActiveCorp is in advanced talks to buy Iowa-based magazine publisher Meredith, according to the Wall Street Journal. The deal is reportedly valued at $ 2.5 billion. As a result of the report, Meredith stock rose 27%, to $ 57, as trading began on Friday.
IAC, which currently includes brands like Brides, DotDash, Handy TripSavvy and Serious Eats, is looking to expand its reach in online publishing with the powerful mainstream titles operated by Meredith including People, Entertainment Weekly, Better Homes and Gardens, Martha Stewart, Hello Giggles. , Fitness, Parents and more.
IAC would benefit from the inclusion of Meredith’s digital sites, as it recently sold online dating company Match Group Inc. to Vimeo Inc.
According to the Journal, IAC is competing with other companies, including The Najafi Cos., For Meredith, but IAC has taken the lead. The deal could arrive as early as the next few days, although there is no guarantee that it will go through.
A representative for Meredith did not immediately return a request for comment. An IAC representative said the company “does not comment on rumors or speculation.”
In May, Meredith sold its 17 local TV channels, in 12 markets, to Gray Television in a $ 2.7 billion deal. But the company continued to struggle with declining newsstand and advertising revenue in its print titles, even after offloading titles such as Time, Fortune and Sports Illustrated following its acquisition of Time Inc. in 2018 for $ 2.8 billion.
Meredith also dared to launch several new magazines, including a lifestyle magazine from home improvement stars Chip and Joanna Gaines called Magnolia Journal.
In April 2020, the company cut the wages of 60% of its employees.