Oct. 7, 2021, 8:07 a.m. EDT

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 (NAS:IAC) 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. (NAS:MTCH) and Vimeo Inc. (NAS:VMEO) 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.

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Dotdash currently owns properties like Brides, Serious Eats and Investopedia. Meredith adds franchises like People, Allrecipes and InStyle.

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