“Why do the Koch brothers want to own a piece of Time Inc.?” asks Recode’s Peter Kafka.
The brothers, billionaires Charles and David Koch, have invested $650 million in the Meredith deal to acquire Time Inc. for $1.84 billion in cash (plus the billion or so Time Inc. has in debt), according to The New York Times.
Kafka speculates, “Do [the brothers] think it’s a good financial bet? Or do the brothers, a powerful force in conservative politics, like the idea of influencing one of the world’s largest publishers, even if it’s nothing like the powerhouse it used to be?”
Or perhaps it is simply a passive investment, Kafka notes.
He then says we should, “See if Meredith, which publishes titles focused on women and the advertisers who want to reach them, ends up hanging on to the titles it has traditionally been uninterested in — particularly Time and Fortune.
“If Meredith — the publisher behind Family Circle and Better Homes and Garden — now decides it is interested in the news business it wanted no part of for years, it doesn’t automatically mean the Kochs plan on having an active hand in the news business. But it would be an obvious answer.”