Meredith Corp, finest identified for its lifestyle magazines corresponding to “Higher Properties and Gardens,” is getting ready to discover a sale of its portfolio of native U.S. broadcast stations because it seems to be to streamline its enterprise, individuals acquainted with the matter stated. Meredith is discussing its plans with monetary advisers and has already obtained curiosity in its stations from non-public fairness agency Apollo International Administration LLC, the sources mentioned.
A deal may seem doubtlessly worth Meredith’s 17 stations at greater than $2 billion, the sources mentioned. Meredith reported earnings earlier than curiosity, taxes, depreciation, and amortization of $223 million for its native media group for the 2018 fiscal yr. The sources, who requested not to be named as a result of the matter is confidential, cautioned that no deal is definite. Apollo and Meredith, which had a market worth of $2.62 billion on Wednesday, each declined to remark.
The divestment would come after Meredith acquired media firm Time Inc final yr for $2.8 billion, in a deal that constructed out its suite of nationwide print and digital media manufacturers. For a reason that acquisition, Meredith has moved to simplify its enterprise and concentrate on its most valuable media properties. It has already bought off its Time and Fortune magazines and has additionally been attempting to promote Sports Activities Illustrated.
A sale of its broadcasting enterprise would go away Des Moines, Iowa-primarily based Meredith with only its digital and print media enterprise, which targets girls primarily and focuses on subjects together with meals, way of life and parenting. Meredith’s stations that are mainly associates of Fox Corp or CBS Corp attain 11 p.c of U.S. households in cities corresponding to Portland, Oregon, and Las Vegas.
It a deal is accomplished; it will be the most recent in a flurry of consolidation that has hit native broadcasting lately. Broadcast tv operators want to both achieve scale or exit the house as viewership, and promoting dollars, more and more shift to suppliers of net-based mostly, streaming content material. In the meantime, the U.S. Federal Communications Fee is predicted to calm down restrictions on what number of stations broadcasters can function, a transfer that might additionally increase dealmaking. Apollo in February agreed to amass a majority stake in 14 tv stations from privately held Cox Media Group, which set it as much as develop into a participant in broadcasting. Reuters reported that the transaction was valued at around $3 billion.
Apollo has been on the prowl for other property to construct up its portfolio. Earlier this week, it misplaced out on a deal when Nexstar Media Group Inc agreed to promote 19 tv stations to Tegna Inc and E.W. Scripps Co for $1.3 billion to fulfill regulatory calls for associated to its Tribune Media Co acquisition. Reuters had beforehand reported Apollo had bid on these stations.