Founder of Salesforce, Marc Benioff and his wife Lynne Benioff are buying Time Magazine from Meredith Corporation for an amount of $190 million. Edward Felsenthal, the Editor in Chief of Time revealed this to the staff stating “The Benioffs will hold Time as a family investment”. He went on to add that Time Magazine will not have any connection with Salesforce and will operate independently. Felsenthal also added that Marc and Lynne Benioff will not operate the business. Meredith Corporation indicated that the deal is likely to close in next 30 days.
The deal was initially reported by The Wall Street Journal and the report pointed out that Time Magazine will “build a new company” to operate the business. This comes almost eight months after Meredith completed its purchase of Time Inc. Marc took to Twitter to added, “We have deep respect for their organization & honored to be stewards of this iconic brand” while announcing the deal. As pointed by a report by The New York Times, this is not the first time where a technology billionaire has taken the reign of an iconic media brand calling back the 2013 deal where Amazon founder and CEO Jeff Bezos purchased The Washington Post.
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One thing to note here is that Meredith pointed out that Marc and Lynne are not looking at private-equity returns. Instead, they are likely to help the magazine make a transition to the digital world without getting involved in the editorial decisions.
The Benioffs also issued a statement adding, “We are honored to be the caretakers of one of the world’s most important media companies and iconic brands” going on to add, “Time has always been a trusted reflection of the state of the world, and reminds us that business is one of the greatest platforms for change.”