The Strategist

Salesforce founder buys Time magazine

09/17/2018 - 16:00

One of the founders of Inc. Mark Benioff and his wife Lynne agreed to buy Time magazine from the publishing house Meredith Corp. for $ 190 million.

Tony Fischer
Tony Fischer
As stated in Meredith’s message, the sale of Time will be completed within 30 days. The deal is not related to Salesforce, which develops customer relation systems. The Benioffs act as private individuals in the deal and are not going to participate in the current management of the magazine work, according to the press release.

It's been less than eight months since Meredith completed acquisition of part of the publishing business from Time Inc. for $ 2.8 billion. In March this year, Meredith put up for sale four magazines purchased from Time Inc.: Fortune, Money, Sports Illustrated and Time. Benioffs do not plan to buy the other three magazines, negotiations on their fate continue.

Drop in demand for print publications and reduction in the volume of advertising placed in them adversely affected the magazine business. Having lost traditional sources of revenue, many magazines could not stand the transition to digital. In the first half of the year, Time’s circulation decreased to 2.3 million copies from 3 million over the same period last year. At the same time, the audience of its website and other digital platforms in July reached 31.7 million people compared to 27.4 million in July 2015, according to comScore Inc.

The American magazine Time has been published since 1923, it was the world's first news weekly. Back then, its circulation was only 9 thousand copies. Time is also known for compiling lists of the most influential people in the world and for the nomination "Person of the Year".