The Koch brothers-known for their conservative politics-will hold no editorial or management control over the publications owned by the Meredith Corporation.
In May of this year, Time Inc announced plans to sell some magazines or other properties as it tried to push ahead with a digital strategy.
As it turns out, the Koch brothers are contributing more than that.
Meredith's deal is backed by $650 million from Koch Equity Development, the investment arm of Koch Industries, an industrial conglomerate rooted in the oil and gas business.
The transaction is subject to customary closing conditions and regulatory approvals, including the tender of a majority of the outstanding shares of Time Inc. common stock and clearance under the Hart-Scott-Rodino Antitrust Improvements Act. The siblings fund a non-profit advocacy group called Americans for Prosperity to back conservative candidates and positions and though the Koch brothers were critical of President Donald Trump's campaign tactics, they have recently become closer with the administration to support its tax reform efforts. This was the third time Meredith attempted to acquire Time since 2013. The company owns lifestyle magazines like Better Homes & Gardens and Family Circle. It also runs 17 local news stations in 12 markets.
Meredith also anticipates savings of $400 million to $500 million in the first full two years of operation thanks to synergies. Time shares jumped 2% in after-hours trading Sunday, and Meredith rose 1.3%.
The magazines now published by Meredith are not highly circulated, as their current line-up includes niche publications such as Better Homes and Gardens, Every Day with Rachael Ray, and Traditional Home.