Meredith, a U.S. media company, agreed to buy Time Inc. for $ 1.85 billion

According to foreign media reports, Meredith Corp. (MDP) has reached a 1.85 billion acquisition of magazine publisher Time Inc. (Time Inc., TIME) transactions. This price is 46% premium over the latest closing price of the Times. Last Friday, Times shares closed at $ 16.90.

Meredith's publications include "Better Homes & Gardens" and "Allrecipes," while Time Inc. owns a number of classic magazine titles such as Fortune, People and Sports Illustrated.

This is Meredith's third attempt to acquire Time Inc. Earlier this year, Meredith tried to make the acquisition but was unable to secure sufficient funds at the time, and Time Inc. ended the sale process by the end of April. Meredith, who made another offer this time, won the financial support of the billionaire Koch. Reported that Meredith had accepted about 600 million U.S. dollars of financial assistance from a private equity unit of Koch Industries, a brother of his brother.

As the circulation shrinks and advertisers turn to digital platforms, the magazine industry faces the same challenges as other traditional media industries. In September of this year, due to the harsh commercial environment coupled with poor management, the founder of the American rock music magazine decided to sell its entire stake. This acquisition was reached, Meredith expects the company will expand its market share in digital advertising to compete with Google and Facebook's online advertising distribution giant.