The liberal love-fest party is over at Time.
Meredith Corporation plans to slash hundreds of jobs after it completes its $2.8bn acquisition of Time Inc as part of a cost-cutting plan reached with the Koch brothers, the conservative US billionaires who are minority investors in the takeover.
People briefed about Meredith’s plans said there would be “significant jobs cuts” after the companies are combined. They added that the Iowa-based publisher would explore the sale of some of Time Inc’s best-known titles, including Time magazine and Sports Illustrated.
Although Charles and David Koch, who backed the deal with $650m in preferred equity, will not have any editorial or operational influence on Meredith’s titles or seats on its board, they are expected to work with the publisher to ensure they get a good return on their investment, a person close to the family said.
Meredith expects to save $400m-$500m in the first two years after the transaction as it trims overlapping costs, including finance, operations, circulation and physical facilities. Executives plan to review the company’s combined portfolio once the deal is completed, with an eye to possible divestitures.