The 20th century’s preeminent weekly newsmagazine, Time Magazine, will soon have a new abode as it is being sold by the Meredith Corp. to Salesforce.com’s co-founder Marc Benioff along his wife. The popularity of Time has prevailed in light of its unique storytelling with regard to issues & people that connect as well as affect the global population. This definitive agreement to sell Time media brand to Benioffs is evaluated at US$ 190 million.
Mr. Benioff stated that they are investing in Time owing to its tremendous influence on the world, which is an incredibly robust business at the same time. The proposed deal is set to close before October 2018. Benioffs are acquiring Time Magazine as individuals, and the agreement is nowhere related to Salesforce.com, wherein Marc Benioff serves as co-chief executive and chairman.
The belief of Benioffs in journalism and optimism about Time Magazine’s large audience and established video business continues to grow, the reason behind their investment in the newsmagazine. However, Benioffs will be taking over the publication whose business remains hammered from current declines in newsstand sales and print advertising. Additionally, several magazines struggle amid transmutation into digital-first businesses, while traditional sources of revenue continue on downward spiral.
This deal between Meredith Corp. and Benioffs is considered to be a much-need impetus for the former. Sales process apropos of the newsmagazine is being dragged on, depicting the gap between Meredith’s belief on its titles’ worth and actual payments that investors are willing to spend while the business is under pressure. Meredith’s chief executive, Tom Harty, stated that TIME has retained its forefront position in most impactful stories and significant events that mold their global conversation, and the newsmagazine will witness promising prospects in the hands of Benioffs.
Benioffs will have no involvement in journalist decisions or daily operations of the Time Magazine, which will be led by the current executive leadership team of Time. Furthermore, Meredith entered into the multi-year agreement with Benioffs for providing services including printing, paper purchasing, subscription fulfillment, and consumer marketing. The company will also continue to deliver business continuity plan. Meredith acquired time at US$ 2.8 billion, as a part of its Time Inc.’s purchase, shortly after which the company announced its sale of Time Inc.’s sports and news brands.