IAC and Meredith Corporation have announced an agreement under which IAC’s Dotdash digital publishing unit will acquire the entity that will own the National Media Group from Meredith Corporation, which includes its digital and magazine businesses and its corporate operations. According to Variety, the transaction has an enterprise value of $ 2.7 billion.
The transaction combines Dotdash’s digital publishing model with Meredith’s brand portfolio, audience and scale. Now called Dotdash Meredith and led by Dotdash CEO Neil Vogel, the combined company is expected to be one of the largest publishers in the United States with brands in all online business categories including home, health, l food, finance, parenthood and beauty. . The transaction will be closed by the end of the year.
“The Meredith family are extremely proud of all the company has accomplished over the past 120 years, which is a direct reflection of our dedicated employees,” said Mell Meredith Frazier, vice chairman of the board of directors of Meredith. “Our creative and dedicated employees have guided our beloved brands through a rapidly changing media landscape, enriching the lives of generations of Americans. The Meredith Foundation will continue to be an active member of the thriving Des Moines community, as will Dotdash Meredith.
“We have often found opportunities in the digital transformations of businesses and industries: travel, ticketing, dating, home services and now publishing. Meredith is already experiencing record digital growth and we believe Dotdash can help accelerate that growth, ”said Joey Levin. , Managing Director, IAC. “We admire consumer confidence in Meredith’s more than 40 brands when it comes to life’s essential decisions, and we believe that true and reliable content created by talented, supported writers, editors and photographers by real brands, has a very bright future on all platforms. Combined with Dotdash’s ability to provide readers with fresh and unbiased content on any topic, together we can deliver a uniquely engaged audience to advertisers and partners, not on the basis of private information or personal stories, but about the relevance of the content they consume and a deep understanding of their needs. No one will do it better than Dotdash Meredith. “
The transaction is structured as a cash acquisition of shares of the entity that will own the digital and magazine businesses of Meredith Corporation following its spin-off to shareholders of Meredith Corporation through the previously announced sale of the group business of Meredith Corporation. local media from Meredith Corporation to Gray Television. . The acquisition of IAC is expected to be funded by IAC. The transaction has been unanimously approved by the board of directors of IAC and Meredith Corporation and is not contingent on a vote of the shareholders of IAC or Meredith Corporation.
“Our digital business is growing rapidly, overtaking our magazine sales for the first time in company history,” said Tom Harty, President and CEO of Meredith. “The combination of Meredith’s famous cross-platform brands, creative content and first-party data with Dotdash’s digital brands is a game-changer for the industry. Nowhere else will you find such a high-end multimedia asset portfolio under one roof. We are delighted to join forces to accelerate the digital future of Meredith. “
“Dotdash is a digital company, and we have a very different lens on how we view publishing. Our success is built on creating the best content and the best online experiences for every topic we cover, without compromise,” says Vogel . “When we look at Meredith, we see a digitally driven business. We see a collection of iconic and revered brands with a rich heritage, category leaders and a similar focus on editorial excellence. We see unprecedented reach for women and a print business that delivers long-standing value to readers and advertisers, which we see as a strong platform to reach and engage consumers. The opportunities are limitless. Meredith can step into her digital future and together we can define our next chapter as Dotdash Meredith. “