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Time Inc. Stumble Sends Shares of Meredith Plunging

  • Time Inc. acquisition has been more difficult than expected
  • The earnings Meredith was expecting ‘just...poof! disappeared’
Donald Trump People Magazine Cover

Photographer: Torontonian/Alamy Stock Photo

Meredith Corp. suffered its worst stock decline since 1986 after the publisher and broadcaster delivered a disappointing forecast and acknowledged that its $1.8 billion acquisition of Time Inc. isn’t delivering the payoff it wanted.

The deal, which was completed last year, turned Meredith into the biggest magazine publisher in the U.S. But the business isn’t as profitable as expected, Chief Executive Officer Tom Harty said on Thursday, and Meredith is now planning to spend more to improve operations.