) announced the acquisition of
magazines and the related digital assets from The Bonnier
Corporation. However, the financial terms of the deal were not
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 "
" 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
Meredith also extended its contract with
Wal-Mart Stores Inc
) 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
) 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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