Did Meredith Just Blow Another Opportunity to Buy Time Inc?
THE IOWA BASED MEDIA GROUP TRIED AND FAILED TO MERGE WITH TIME INC BEFORE IT WAS SPUN OFF BY TIME WARNER BACK IN 2013
Meredith is slowly building a track record of not being able to close a deal. First back in 2013 as Time Warner was trying to figure out what to do with its magazine business Time Inc, Meredith came in with a merger proposal but the deal quickly fell apart as Time Warner saw spinning of Time Inc as a more attractive option. Following that collapse, Media General announced that it was buying Meredith for $3.1 billion creating a new company that was to be known as Meredith Media General with Meredith's Steve Lacy topping it off as CEO. But that deal also fell apart when yet another attractive option presented itself to Media General's brass. Media General was being pursued by Nexstar which dropped a $4.1 billion offer on the table. So naturally the Media General folks did the math. Do they spend $3.1 billion for another company, or sell for $4.1 billion? It wasn't a close call for Media General because they jumped on the Nexstar offer leaving Meredith at the altar. But Media General didn't leave Meredith empty handed. The company paid $60 million to Meredith to help them forget they even knew each other and that was the end of that. Now if today's news is true, Meredith could possibly lose out on yet another opportunity to buy Time Inc. Apparently the Iowa based company fell short on their offer price to Time Inc which is believed to be looking for $20 or more a share to sell. However luckily for Meredith, Time Inc is said to be willing to negotiate on the price. So if you thought this process has been one of the longest, it looks like it's about to get even longer. The process has only stunted Time Inc's stock which fell more than 3% today.
Did Meredith Just Blow Another Opportunity to Buy Time Inc? Reviewed by Editor on Wednesday, April 12, 2017 Rating: