Meredith Corporation (MDP) announced the acquisition of Parenting and Babytalk magazines and the related digital assets from The Bonnier Corporation. However, the financial terms of the deal were not disclosed.
Meredith has been constantly endeavoring to explore and add alternative revenue generating channels through acquisitions or strategic alliances. Thereby, the company is attempting to reduce its dependence on conventional advertising.
In the past, Meredith acquired “Every Day with Rachael Ray” the award-winning magazine of Reader's Digest Association, and assets of “FamilyFun” magazine from Disney Publishing Worldwide. It also acquired the world's No. 1 digital food site, “Allrecipes.com” for about $175 million, to expand its digital platform.
Moreover, the company is aggressively expanding its brands through online platforms, televisions, videos, mobile applications, and broadening its reach of food and lifestyle content across tablet products, such as the iPad, NOOK Color, Kindle Fire, and Samsung Galaxy.
The company signed agreements in Turkey and Italy to enhance the reach of its renowned brands like Better Homes and Gardens, Parents and More, and Allrecipes.com.
Meredith also extended its contract with Wal-Mart Stores Inc. (WMT) through 2016, which includes an expansion of the Better Homes and Gardens branded home decor and garden program at Wal-Mart stores across the United States and Canada.
Alongside, the company renewed its long-term affiliation agreements with CBS Corporation (CBS) and News Corp.’s (NWSA) Fox Broadcasting Co.
Going forward, management’s strategy will be focused upon bolstering advertising revenue, primarily in the digital space, enhancing online consumer transactions, especially magazine subscription orders, focusing on non-advertising dependant activities, such as brand licensing, marketing services and e-Commerce, and attaining operational efficiencies.
Currently, shares of Meredith hold a Zacks Rank #3 (Hold).
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