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Burson-Marsteller has announced Jonathan Stern‘s arrival as Managing Director and Market Leader of the firm’s Miami office, a key component of the firm’s Latin America business.  Stern will lead a team serving diverse clients, will be responsible for the strategic growth of the Miami operation, and provide senior counsel to key clients.

 

 

 

 

 

Adsmovil has announced the appointment of Alejandro Leyva as (CDO) Chief Data Officer. Based in Miami, he’ll be in charge of developing the data area for the Latin American and US Hispanic markets.

 

 

 

 

 

Dataxu, a software provider for marketing professionals, has announced the promotion of Tiffany Mosher to Chief People Officer. In this newly created role, she will expand upon her previous role leading global human resource operations and initiatives for the team of more than 350 employees.

 

 

 

 

Spanish Broadcasting System, Inc. has named Geraldo Arriaga as Vice President, Digital Media Sales of SBS, LaMusica App. In this role, Geraldo will spearhead all of the Company’s digital revenue efforts at the national scale and ensure SBS’s Digital Media programs are fully integrated into the network’s growing “Original Content Strategy.”

 

 

 

 

Luis Solis is now Director, Integrated Sales (Eastern Seaboard) at Meredith Corporation.

 

 

 

 

 

 

Michael Strober, previously VP of client strategy and ad innovation at Turner, is leaving the company. He has also been an integral member of OpenAP, the consortium developed by Turner, Fox and Viacom last year to help standardize audience buying on TV that goes beyond traditional, basic demographics.

 

 

 

 

The New York Times has promoted Gilbert Cruz, previously television editor and an innovative digital journalist in the world of entertainment and the arts, to Culture Editor of The Times. In the years ahead, Gilbert’s primary task will be to build and expand a powerful digital culture report to complement the journal’s print sections.

 

 

 

 

Ingrid Ciprian-Matthews has been promoted to Executive Vice President at CBS News, starting this month. She’ll continue to work directly with CBS News President David Rhodes overseeing day-to-day news coverage.

 

 

 

 

 

 

Chiqui Esteban is the Washington Post’s new Graphics Director. The paper’s Executive Editor Martin Baron and Managing Editor Emilio Garcia-Ruiz announced his promotion, praising Esteban’s skills an influence as department head for a year and a half.

 

 

 

 

Nuno Teles, a 14-year Heineken veteran who has been U.S. chief marketing officer since early 2014, is departing to take over as the president of Diageo’s beer division, which includes Guinness, starting in March. His replacement as of April 15 is Jonnie Cahill.

 

 

 

 

Marta Fontcuberta has announced her departure from The Coca-Cola Company, where she was global head of marketing communications based in Atlanta. She was distinguished by Adlatina and AdAge as one of the 14 Women to Watch when she was head of marketing communications in Latin America.

 

 

What: Meredith Corporation has entered into a binding agreement to acquire all outstanding shares of Time Inc. for US$18.50 per share in an all-cash transaction valued at us$2.8 billion. Meredith adds leading media brands to its  portfolio of National and Local Media Properties, creating a media powerhouse with US $4.8 billion in revenues, Including US$2.7 billion of advertising revenues. Meredith stock was up 8.2% at US $66 at noon in Wall Street. The transaction includes Time Inc’s ad-tech company  Viant.
Why it matters: Meredith is the main consolidator in the magazine industry. The main interest in the transaction lies in Time Inc’s People magazine and brand extensions. Meredith’s main magazines skew towards women audiences. It will be interesting to see whether Meredith will keep Time Inc’s news, business and sports titles (e.g. TimeFortune and Sports Illustrated).  Meredith will be a top-tier data player with a database of more than 250 million email addresses/device IDs, paired with leading advertising technology platforms and shopper marketing capabilities.

Meredith Corporation announced that it has entered into a binding agreement to acquire all outstanding shares of Time Inc. for US$18.50 per share in an all-cash transaction valued at us$2.8 billion. The transaction has been unanimously approved by the Boards of Directors of Meredith and Time Inc. and is expected to close during the first quarter of calendar 2018.

Meredith will be a top-tier data player with a database of more than 250 million email addresses/device IDs, paired with leading advertising technology platforms and shopper marketing capabilities.

The transaction will create a diversified media and marketing company with calendar 2016 combined revenues of US$4.8 billion – including US$2.7 billion of total advertising revenues with nearly US$700 million of digital advertising revenues – and adjusted EBITDA of US$800 million. Additionally, Meredith anticipates generating cost synergies of US$400 million to US$500 million in the first full two years of operation.

 Meredith will be well-positioned to benefit from fast-growing digital advertising platforms, including native, video, shopper marketing, programmatic and social.

“This is a transformative transaction for Meredith Corporation, and follows a fiscal 2017 in which we posted the highest revenues, profit and earnings per share in our 115-year history,” said Meredith President and Chief Operating Officer Tom Harty “When you combine our strong local television business – which has grown operating profit 15 percent annually over the last five years – with the trusted, premium multiplatform content creation of Meredith and Time Inc., it creates a powerful media company serving consumers and advertisers alike. We look forward to completing the transaction; welcoming the Time Inc. employees to Meredith; delivering on our pledge to achieve identified synergies; and growing shareholder value.”

Below are the main strategic rationales of the acquisition, according to a Meredith press release.

  • Creates unparalleled portfolio of national media brands with greater scale and efficiency – Combined, Meredith’s brands will have a readership of 135 million and paid circulation of nearly 60 million, with leading positions in celebrity, food, lifestyle, news and sports, parenting, and home content creation, as well as enhanced positions in the beauty, fashion and luxury advertising categories.
  • Continues the strong and growing contribution from local media – Meredith’s portfolio of 17 high-performing television stations in 12 markets is a consistent generator of strong cash flow. Meredith’s stations – which reach more than 11 percent of U.S. television households – are primarily Big 4 network affiliates located in fast-growing markets. In fiscal 2017, Meredith’s broadcasting business delivered the best year in its 60-year history, generating record revenues and profit – including more than $60 million of political ad revenues – and an EBITDA margin of 40 percent. Looking ahead, Meredith anticipates another strong political advertising year in fiscal 2019.
  • Accelerates Meredith’s digital position by adding significant scale – Meredith will be transformed into a Top 10 digital media company with 170 million unique monthly visitors in the U.S., over 10 billion annual video views, and nearly $700 million in digital advertising revenues. It will operate the No. 1 premium digital network for American consumers with unmatched reach to Millennials. Additionally, Meredith will be a top-tier data player with a database of more than 250 million email addresses/device IDs, paired with leading advertising technology platforms and shopper marketing capabilities.
  • Provides advertising and consumer revenue diversification and growth – Meredith will be well-positioned to benefit from fast-growing digital advertising platforms, including native, video, shopper marketing, programmatic and social. Also, Meredith expects to increase consumer revenue from diversified streams, including bundled circulation activities, brand licensing, ecommerce, events, video creation, content management, and marketing services.
  • Enhances financial strength and flexibility – Meredith expects the transaction will be accretive to free cash flow in the first full year of operations. Meredith has demonstrated a strong track record of achieving cost synergies with prior acquisitions, and is confident in its ability to optimize the cost structure of the combined business. The increased scale and free cash flow – coupled with cost synergy achievement – positions Meredith to aggressively pay down debt and achieve a leverage ratio of approximately 2x by 2020, and take advantage of future acquisition opportunities in the media space.
  • Increases Total Shareholder Return – Meredith remains committed to delivering top-third Total Shareholder Return. Meredith will continue to pay its current annual dividend of $2.08 per share, and expects ongoing annual dividend increases. Meredith has paid a dividend for 70 consecutive years and has increased it for 24 straight years.

“To summarize, we believe this acquisition represents a transformative and financially compelling growth opportunity for Meredith Corporation and will increase shareholder value over time,” Lacy said. “We are acquiring an impressive portfolio of leading brands and a digital business of scale with tremendous growth potential, complemented by our growing television broadcasting business that produces strong cash flow, fueled by growing political advertising and retransmission revenues. And the company will be led by Meredith’s executive management team with expertise in integrating acquisitions and operating multiplatform media businesses.”

 

BDT & Company and Moelis & Company are serving as financial advisors to Meredith, and Cooley LLP is serving as legal counsel.

 

 

 

What: Media General, Inc. and Meredith Corporation have announced a merger agreement under which Media General will acquire Meredith in a cash and stock transaction currently valued at approximately US$2.4 billion. Media General will also take on Meredith’s net debt of US $772m, giving the deal an enterprise value of $3.1bn.
Why it matters: Media General will create a new multiplatform and diversified media company to be known as Meredith Media General following the agreement. Meredith, the second largest magazine publisher in the U.S,  has been seen as a potential buyer of Time Inc’s print assets, but now, analysts claim, Meredith Media General could put its large stable of magazines media assets up for sale.

logomg-logoMedia General, Inc. and Meredith Corporation have announced a definitive merger agreement under which Media General will acquire all of the outstanding common stock of Meredith in a cash and stock transaction currently valued at approximately US$2.4 billion to create a powerful new multiplatform and diversified media company to be known as Meredith Media General.

Until 2012 Media General was a major newspaper publisher. That year it sold most of its newspaper assets and to focus on its broadcast assets, currently 88 stations across 55 markets, and expand them through acquisition. Meredith Corporation, on its part, historically has been the largest magazine publisher targeting women in the U.S..

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J. Stewart Bryan III

Upon the closing, the Board of Directors will consist of 12 directors, eight appointed by Media General and four appointed by Meredith. J. Stewart Bryan III, current Media General Chairman, will be Chairman of Meredith Media General.

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Stephen M. Lacy

Stephen M. Lacy will lead Meredith Media General as Chief Executive Officer and President.

 

 

Joseph H. Ceryanec
Joseph H. Ceryanec

Joseph H. Ceryanec will be the Chief Financial Officer. The balance of Meredith Media General’s senior management team will be a combination of the two existing executive teams. The company will maintain corporate and executive offices in Des Moines and Richmond.  Meredith Media General will be incorporated in Virginia.

Meredith Media General will be well positioned to grow in a rapidly consolidating and evolving media industry.  It will use its strong financial profile to deliver substantial value to shareholders, customers and employees. This financial profile includes:

• Pro-forma annual revenues of US$3 billion and EBITDA of over US$900 million;

• More than US$800 million of total synergies expected within the first two years with US$60 million of run-rate synergies expected in the first 12 months of operations post-closing;

• Significant free cash flow that can be used to rapidly pay-down debt; forma adjusted EBITDA, as per Media General’s credit agreement;

• Expected pro forma net leverage at closing of less than 5.5x, based on 2014/2015 average pro

• Consistent with Meredith’s long history of Total Shareholder Return, a strong commitment to returning cash to shareholders via dividends over the longer term; and

• The opportunity to continue growing and expanding its portfolio on the national and local level as the media industry consolidates.

Media General Chairman J. Stewart Bryan III said, “This merger creates greater opportunities for profitable growth than either company could achieve on its own. Importantly, shareholders of both companies will benefit from the upside potential of a diversified and strategically well-positioned media company with a strong financial profile and the ability to generate significant free cash flow.”

Meredith CEO Steve Lacy said, “We are excited about the opportunity to create a powerful new multiplatform and diversified media company with significant operations on the local and national levels. This merger will create a strong and efficient company positioned to realize the significant earnings and cash flow potential of local broadcasting; leverage the unparalleled reach and rich content-creation capabilities of Meredith’s national brands; and capture the rapidly developing growth potential of the digital media space. It also positions Meredith Media General to deliver enhanced shareholder value and participate in future industry consolidation.”

Meredith Media General will boast a portfolio of best-in-class media platforms including:

Third-largest local television station owner, initially with 88 television stations across 54 markets that reach 30 percent – or approximately 34 million – U.S. TV households. It will include 40 Big Four network-affiliated TV stations located in the Top 75 DMAs. Stations in six markets will be swapped or otherwise divested in order to address regulatory considerations. These markets are Portland, OR; Nashville, TN; Hartford-New Haven, CT; Greenville-Spartanburg, SC-Asheville, NC; Mobile, AL-Pensacola, FL; and Springfield, MA. To the extent that the company is able to successfully execute swaps, as opposed to outright sales, it will further enhance the combined company’s size and scale. Moelis & Company has been retained to manage the process of divesting stations in overlapping markets to facilitate regulatory approval.

• Leading multiplatform national media brands with a top female reach of 100 million unduplicated American women and over 60 percent of U.S. Millennial women. These category leading brands include Better Homes and Gardens, Allrecipes, Parents and Shape.

• A powerful digital platform reaching over 200 million monthly unique visitors via a combination of leading national and local consumer sites and business-to-business digital capabilities in key growth sectors such as content, mobile, social, video, and native advertising. Digital revenues are expected to exceed US$500 million in the first full year of operations post closing.

• Diverse revenue streams including a Top 3 global brand licensing program and leading marketing services agencies.

 

What: Meredith Corporation  unveiled its new Quarterly English-language magazine “Parents Latina,” created specifically for Hispanic Millennial Moms.The quarterly debuts with  a guaranteed rate base of 700,000 and incorporates top-notch parenting content of Parents and Ser Padres magazines with the cultural values and heritage specific to bilingual Latina mothers.
Why it matters:  Almost all recent magazine launches in the Hispanic market have been English-language magazines, vs. Spanish-languages, in general, and Hispanic magazines in particular were hard hit last year due to the decrease in print advertising Procter & Gamble, the largest advertiser in the category.

unnamedMeredith Corporationhas unveiled Parents Latina, a new English-language magazine targeting U.S. Hispanic millennial moms, one of the fastest growing consumer segments in the marketplace.

Parents Latina is the latest enhancement to the Meredith Parents Network, which already includes Parents, FamilyFun, American Baby, and Ser Padres, as well as the digital brand extensions of Fit Pregnancy and ParentingParents Latina, which will be published initially on a quarterly basis, debuts with a guaranteed rate base of 700,000. It joins Meredith’s portfolio of brands serving U.S. Hispanic women including Siempre Mujer, Ser Padres, Ser Padres Espera, and Ser Padres Bebé.

Backed by the trusted Parents brand, Parents Latina incorporates parenting content of Parents and Ser Padres magazines with the cultural values and heritage specific to bilingual Latina mothers. A wide range of relevant topics will be featured in each issue, including kid’s health and nutrition, women’s health and beauty, home and lifestyle, cooking and family recipes, and finance and budget planning.

By 2030 one out of three children born in the U.S. will be of Hispanic heritage.

Meredith’s Hispanic Media Group currently reaches over 5 million Hispanic women including more than 2 million Hispanic millennial moms. According to the most recent census, by 2030 one out of three children born in the U.S. will be of Hispanic heritage. Advertisers in the launch issue feature well-known brands and marketers as L’Oreal, Procter & Gamble, Johnson & Johnson, SheaMoisture and Toyota among others.

“Millennials expect customization, and Parents Latina allows us to deliver culturally relevant content in English to an important segment of highly engaged Hispanic millennials,” says Dana Points, Content Director, Meredith Parents Network. “Research shows that U.S. Hispanics are consuming more media content in English, reflecting growing acculturation. Yet in our pre-launch research, 80 percent of potential readers felt there wasn’t a magazine that currently spoke to the English-dominant Latina mom, and 90 percent found the concept of Parents Latina very appealing.”

Parents Latina speaks directly to Latina moms who are raising children in a modern-day multicultural family setting,” says Grace Bastidas, editor of Parents Latina. “I’m thrilled to introduce a new magazine that has been created to help parents like me balance our American and Hispanic cultures, so that our families can enjoy the best of both world.

Major launches in English

Most of the new Hispanic magazine launches have been in the English-language category. Carlos Pelay, Research Director/Founder at Media Economics Group, tells Portada that the momentum seems to be in favor of English-language titles. “With the exception of Playboy Latino, which launched at the end of 2014), all of the major launches in the past few years have been English-language (e.g. Cosmo for Latinas/Hearst, and Glam Belleza Latina/Conde Nast),” notes Pelay.

Pelay adds that a whole, regardless of language, the magazine segment was hit hard last year. One significant factor was Procter & Gamble’s shift in ad spending from “traditional” to digital and social media. Overall, P&G is estimated to have reduced spending across all media (general market) by 14.4% and by 40% in Hispanic magazines. This was a significant blow because P&G has traditionally been the top advertiser in this segment. Unfortunately, the Hispanic magazine segment has for too long been too dependent on the personal care category which accounted for almost half (48% ) of ALL ad dollars last year. Just two advertisers – P&G and L’Oreal – accounted for almost one-third (31%) of Hispanic magazine segment revenues.

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What: Meredith Corporation will launch the new English-language magazine  Parents Latina with a circulation of 700,000, aimed to serve the growing population of English-speaking U.S. Hispanic millennial mothers. The magazine will be launching  in Spring 2015  and complement Meredith’s existing Spanish-language brand, Ser Padres (circ. 850,000, 8 times a year).
Why it matters: In a recent Portada article marketers “complained” that content targeting acculturated Latinas is not good enough and too scarce. Time Inc.’s People en español recently announced the launch of a new English-language digital and print offering  called “Chica”. Now Meredith, another major publisher targeting the Hispanic market is adapting its offerings as well.

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Meredith is betting on the millennial Hispanic mom. The magazine publisher is launching a full-fledged quarterly magazine called Parents Latina in spring 2015 with a circulation of 700,000. Parents Latina is headed up by Dana Points, content director for the Meredith Parents Network. She will oversee the magazine’s entire editorial operation. Support staff  to help produce the title will be pulled from the existing pool of workers at the Meredith Hispanic Media Group.  The new magazine will debut in spring 2015 to complement Meredith’s existing Spanish-language brand, Ser Padres.

“We believe Parents Latina will have tremendous appeal to the growing market of second-generation Hispanic moms who crave cultural relevance in their media but prefer to consume it in English,” says Carey Witmer, President, Meredith Parents Network.

“Our research shows that nine out of 10 second-generation Hispanic moms find the concept of Parents Latina appealing to them, and reflected their cultural values and heritage,” says Dana Points, Content Director, Meredith Parents Network.

Hispanic media no longer equates to Spanish-language only and the landscape will continue to evolve in the coming years with more media companies looking to attract this consumer with in-culture content regardless of language.

How is the launch being perceived by the media buying community?

“The launch of Parents Latina is a reflection of the growing Hispanic bilingual consumer seeking culturally relevant content in either language. Hispanic media no longer equates to Spanish Language only and the landscape will continue to evolve in the coming years with more media companies looking to attract this consumer with in-culture content regardless of language,”Karina Dobarro,  Vice President, Managing Director, Multicultural Brand Strategy at Horizon Media, tells Portada.

On the client side, Daniel Villaroel, Director Multiethnic Marketing at Maybelline New York and Garnier, says that “it’s great that we have more ways to reach Latinas, regardless of language. These new publications also recognize they have to go above and beyond to provide qualitative data about their magazine’s success since standard metrics aren’t available.”

These new publications also recognize they have to go above and beyond to provide qualitative data about their magazine’s success since standard metrics aren’t available.

Distribution Method

Enedina Vega-Amaez, Vice President/Publisher of the Meredith Hispanic Ventures Group, tells Portada that Parents Latina’s distribution method will be a combination between controlled circulation and subscription. She adds that the new magazine should lure most advertising categories from packaged goods to OTC, to auto, retail and beauty. Regarding Parents Latina’s digital presence Amaez says that “We will be developing a social presence for the brand as part of the Meredith Parents Network.”

Meredith
Meredith

The Meredith Parents Network is a gathering of five cornerstone brands – American Baby, FamilyFun, Parents, Ser Padres, and now Parents Latina – .The Network reaches Hispanic moms through dynamic media platforms to engage them in ways they can personally relate to – in the moments, places, and languages that are meaningful to them.

At present, Meredith Corporation serves Hispanic women exclusively through the following multimedia brands:

  • Siempre Mujer : a Spanish- language women’s lifestyle title written for, by and about the modern Hispanic woman living in the U.S. It is published six times a year with a ratebase of 550,000.
  • Ser Padres : Published eight times a year with a ratebase of 850,000,this magazine serves Spanish-speaking parents, offering content and information that empower and inspire Latina moms with solutions for their children, home and life.
  • Ser Padres Espera : Serves new and first-time expectant Spanish-speaking parents. It is published three times a year with a rate base of 500,000.
  • Ser Padres Bebe: Published annually with a ratebase of 600,000, Ser Padres Bebe serves the Hispanic new parents market, and is the chosen source for new moms looking for education and inspiration on raising a healthy and happy baby.

Moreover, many of Meredith’s popular brands – including Better Homes and Gardens, Allrecipes, Family Circle, Fitness and Every Day with Rachael Ray – have significant followings from English-dominant Latina consumers.