IAC/InterActiveCorp. announced Wednesday that it plans to purchase publisher Meredith Corp.’s media assets for about $2.7 billion. The company plans to combine Meredith
with its existing Dotdash media business, which runs properties in a number of verticals such as food and finances. The Wall Street Journal previously reported that IAC
and Meredith were in discussions about a deal.
IAC is acquiring Meredith’s national media group for $42.18 a share. Shares of Meredith were up 6.3% in after-hours trading Wednesday to $58.20. The company previously announced plans to sell its TV stations to Gray Television for $16.99 a share. Shares of IAC were up 6.7% in the aftermarket. The company said in its release that the joint Dotdash Meredith unit will reach a monthly audience of 175 million people, including 95% of U.S. women. Dotdash Chief Executive Neil Vogel will head the combined group. Media giant IAC is known for growing companies and then spinning them out into stand-alone businesses, and the company is in the process of reinventing itself once again after recently sending Match Group Inc.
and Vimeo Inc.
out on their own. The company has been upbeat about opportunities in the digital publishing business and focuses on what it says is intent-driven content, since many readers come to the Dotdash portfolio of sites looking for answers to specific questions. Don’t miss: Vimeo CEO says momentum can continue past pandemic: ‘We’re looking to create a market that was never there’ Dotdash currently owns properties like Brides, Serious Eats and Investopedia. Meredith adds franchises like People, Allrecipes and InStyle.