Meredith Shares Pop As IAC's Dotdash Acquires National Media Group

IAC/InterActiveCorp IAC and Meredith Corp MDP forged an agreement under which IAC's Dotdash digital publishing unit will acquire the entity that will hold Meredith Corp's National Media Group, comprised of its Digital and Magazine businesses, and its corporate operations (Meredith), in an all-cash transaction of $42.18 per share.
The transaction combines the power of Dotdash's digital publishing model with Meredith's trusted, iconic brand portfolio, loyal audience, and scale.
The combined company, to be called Dotdash Meredith and led by Dotdash CEO Neil Vogel, would likely be one of the largest publishers in America with leading brands across the highest value commercial categories online, including home, health, food, finance, parenting, and beauty.
On a pro forma basis, the combined company expects Adjusted EBITDA from digital assets to exceed $450 million in 2023.
The transaction would likely close by the end of the year.
"Our digital business is growing rapidly, having surpassed our magazine sales for the first time in the company's history," Meredith Chairman and CEO Tom Harty said. "The combination of Meredith's celebrated cross-platform brands, creative content, and first-party data with Dotdash's digital-first brands is a game-changer for the industry."
IAC held $3.5 billion in cash and equivalents as of June 30.
Price Action: MDP shares traded higher by 6.45% at $58.07 in the premarket session on the last check Thursday.