Meredith Corp. agreed to acquire Time Inc. for about $1.8 billion in cash, swallowing the once-mighty home of Fortune and Sports Illustrated after the internet age wreaked havoc on even the most prestigious magazine titles.
The $18.50-a-share offer will give Meredith, publisher of Better Homes & Gardens, a larger audience to compete with Facebook and Google in attracting advertisers. The acquisition also provides the billionaire Koch brothers, who agreed to support Meredith’s offer with an equity injection of $650 million, a stake in well-known media brands like Time magazine. Meredith shares surged as much as 16 percent.