Meredith Corp., the largest US magazine publisher, has agreed to be acquired by Barry Diller’s IAC/Interactive.
Investopedia, The Spruce, Byrdie, and Brides are among the brands published by IAC’s Dotdash unit.
Achieving 175 million monthly unique visitors across categories like home, health, food, finance, parenting, beauty, and parenting advice, Dotdash Meredith will be among America’s top ten digital publishers.
Last year, the companies collectively generated over $1 billion in advertising revenue and e-commerce sales to retail partners.
The combined company’s EBITDA is expected to reach $450 million in 2023.
Meredith’s advertising capabilities, first-party data, and strong advertiser relationships will be combined with Dotdash’s e-commerce and performance capabilities.
Meredith reported $429 million in digital ad revenue and $427 million in print ad revenue for its fiscal year ended June 30, the first time in its history.
Digital is expected to account for over 70% of pro forma adjusted EBITDA in 2021.
In a presentation to investors, Dotdash CEO Neil Vogel said Meredith’s advertising team is more experienced than IAC’s and that Meredith generates roughly twice the revenue per website visit.
The new company’s print investments will be focused on profitable, top-performing brands, according to Vogel.
Meredith already reaches 95% of US women and over 190 million US consumers monthly through digital and print media. In addition, both companies have online audiences that overlap.
By partnering with Walmart, Better Homes & Gardens became Meredith’s second-largest brand licensor.
Dotdash has reported double-digit revenue growth for 17 consecutive quarters, reaching around 100 million monthly users.
IAC has recently acquired and spun off digital businesses like Expedia, Ticketmaster, Lending Tree, Match Group, and Vimeo.
Dotdash Meredith will be HQ in New York, with a “presence” in Des Moines, Iowa, a spokesperson told The New York Times.
According to the Des Moines Register, Meredith CEO Tom Harty said the company sold due to IAC’s “premium price” and the two companies’ strong fit.
According to the Register, IAC CFO Tim Quinn said the company would save $50 million next year due to “duplicative corporate overhead.”
