Meredith Acquisition: Key Details, Impact, and What Comes Next

Dotdash's acquisition of Meredith marks a significant shift in the media landscape. By merging Meredith's iconic brands with Dotdash's digital expertise, the new entity, Dotdash Meredith, aims to become a leading force in both digital and print publishing. This strategic move is set to enhance their advertising capabilities and broaden their reach, impacting nearly 200 million people.

What Is Meredith?

Founded in 1902, Meredith is a prominent player in both digital and print publishing. The company offers a diverse range of content categories, including health, finance, food and drink, home, beauty and style, travel, tech and sustainability, and entertainment. As America's largest digital and print publisher, Meredith reaches nearly 200 million people each month. Its unique selling points include a wide array of trusted brands and innovative tools like the Intent Targeting Tool for advertising.

Who Acquired Meredith?

Dotdash is a leading entity in the publishing industry, recognized as America's largest digital and print publisher. The company offers a wide range of content across categories such as health, finance, food and drink, home, beauty and style, travel, tech and sustainability, and entertainment. Key products include digital and print publications, an Intent Targeting Tool for advertisers, and events like the Food & Wine Classic in Aspen. Dotdash reaches nearly 200 million people monthly, underscoring its significant market influence.

When Was Meredith Acquired?

Dotdash acquired Meredith on December 1, 2021. This acquisition occurred during a period of significant digital transformation in the publishing industry. The merger reflects a broader trend of consolidating digital and traditional media assets to leverage combined strengths in advertising, data, and e-commerce. The timing also aligns with the industry's shift towards data-driven and intent-driven content delivery, aiming to enhance user engagement and advertising effectiveness.

Why Was Meredith Acquired?

• Market Expansion: The acquisition of Meredith by Dotdash significantly broadens their market reach, making Dotdash Meredith the largest digital and print publisher in America. The combined entity reaches nearly 200 million people monthly, including 95% of U.S. women, which represents a substantial increase from Dotdash's previous audience.
• Technology Integration: Dotdash benefits from Meredith's advanced advertising capabilities and first-party data, which, when combined with Dotdash's digital-first e-commerce and performance marketing expertise, creates a powerful digital platform. This integration is expected to drive significant digital growth, with more than 70% of the combined company's 2021 pro forma Adjusted EBITDA coming from digital assets.
• Competitive Advantage: The merger strengthens Dotdash Meredith's position against competitors by combining Meredith's iconic brands and deep advertiser relationships with Dotdash's digital expertise. This synergy positions the company as a top 10 internet property in the U.S., expected to generate over $1 billion in advertising revenue and drive significant sales to retail partners.

Acquisition Terms

• Acquisition Price: $2.7 billion
• Payment Method: All-cash transaction
• Key Conditions or Agreements:
  • The transaction was subject to customary closing conditions, including regulatory approvals and the completion of the spin-off of Meredith Corporation's Local Media Group to Gray Television.
  • The acquisition was unanimously approved by the Boards of Directors of both IAC and Meredith Corporation.
  • The deal did not include Meredith’s local TV business, which was sold to Gray Television earlier in the year.
  • The combined company, named Dotdash Meredith, will be led by Dotdash CEO Neil Vogel.
  • The acquisition agreement includes provisions for adjustment in certain scenarios.

Impact on Meredith

The acquisition of Meredith by Dotdash has led to significant changes in operations and management. Dotdash Meredith, now a reporting segment within IAC, is led by CEO Neil Vogel. The integration process has been challenging, with efforts to migrate Meredith’s sites to a performance-focused ad product taking longer than expected. Despite these hurdles, the combined entity aims to leverage Meredith's iconic brands and Dotdash's digital expertise to enhance its market position and operational efficiency.

Product offerings and services have also evolved post-acquisition. The merger has combined Meredith’s strong advertising capabilities with Dotdash’s e-commerce and performance marketing expertise. This integration aims to deliver faster site speeds, reduced ad inventory, and a focus on high-growth digital assets. Employee reactions have been generally positive, with a focus on collaboration and growth opportunities. Customer reactions have been mixed, with some challenges in traffic and ad spend, but the potential for enhanced user engagement remains high. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly and efficiently.