Why Are Meredith Shares Trading Higher Premarket? - IAC (NASDAQ:IAC)

IAC/InterActiveCorp IAC is in advanced talks to acquire magazine publisher Meredith Corp MDP in a deal valued at over $2.5 billion, the Wall Street Journal reports.
The deal would vastly expand IAC’s collection of online publications and bulk up IAC’s portfolio of websites which lost sheen after the spin-offs of Match Group Inc MTCH and Vimeo Inc VMEO.
IAC, which billionaire Barry Diller helms, has a leg up on private equity firm Najafi in the bidding and could strike a deal with Meredith shortly.
Earlier this year, Meredith sold its broadcast portfolio of 17 television stations to Gray Television in a $2.7 billion deal to reduce its net debt and focus on allocating capital to “fast-growing digital and consumer opportunities,” Forbes reports.
The sale of the rest of the company would be an abrupt exit for Meredith, which four years ago bought Time Inc for $1.85 billion.
Price Action: MDP shares traded higher by 17.6% at $52.79 in the premarket session on the last check Friday.