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Why Are Meredith Shares Trading Higher Premarket?

Benzinga · 09/24/2021 07:03
  • IAC/InterActiveCorp (NASDAQ:IAC) is in advanced talks to acquire magazine publisher Meredith Corp (NYSE: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 (NASDAQ:MTCH) and Vimeo Inc (NASDAQ: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.