IAC agrees to pay $2.7 billion for Meredith media assets

By Emily Bary

IAC/InterActiveCorp. announced Wednesday that it plans to purchase publisher Meredith Corp.’s media assets for about $2.7 billion.

The company plans to combine Meredith with its existing Dotdash media business, which runs properties in a number of verticals such as food and finances. The Wall Street Journal previously reported that IAC /zigman2/quotes/205118493/composite IAC -2.89% and Meredith were in discussions about a deal .

IAC is acquiring Meredith’s national media group for $42.18 a share. Shares of Meredith were up 6.3% in after-hours trading Wednesday to $58.20. The company previously announced plans to sell its TV stations to Gray Television for $16.99 a share.

Shares of IAC were up 6.7% in the aftermarket. The company said in its release that the joint Dotdash Meredith unit will reach a monthly audience of 175 million people, including 95% of U.S. women. Dotdash Chief Executive Neil Vogel will head the combined group.

Media giant IAC is known for growing companies and then spinning them out into stand-alone businesses, and the company is in the process of reinventing itself once again after recently sending Match Group Inc. /zigman2/quotes/207178501/composite MTCH -1.80% and Vimeo Inc. /zigman2/quotes/226848462/composite VMEO -2.17% out on their own. The company has been upbeat about opportunities in the digital publishing business and focuses on what it says is intent-driven content , since many readers come to the Dotdash portfolio of sites looking for answers to specific questions.