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More than a year after the release of Sports Illustrated, Meredith Corp. agreed to sell the sports magazine brand to Authentic Brands, a licensing and brand development company, for $ 110 million.
The sale does not mean that Meredith Corp. get rid of Sports Illustrated entirely; ABG will not control Sports Illustrated's editorial products for at least two years. Instead, Meredith Corp. pay a license fee to ABG to continue to operate the print magazine product and SI.com. The terms of this license agreement have not been disclosed.
ABG, which owns brands such as Nine West and Juicy Couture, will seek to exploit the Sports Illustrated brand in new licensing agreements, which could include live programming and original content in the nascent field of esport and gaming. athletic. The licensing company will assume control of the marketing, business development, e-commerce and licensing functions of Sports Illustrated and its sub-brands, including Sports of the Year, Sports Illustrated Kids and Sports Illustrated. Swimsuit.
The company may also license Sports Illustrated's photographic archive containing more than 2 million images, according to a statement.
"SI is one of the most iconic sports media brands, SI is a cultural showpiece that offers tremendous growth potential on its growing digital, television and social platforms, as well as its print magazine, the an industry leader, "said ABG founder and CEO Jamie Salter. statement about the transaction. "SI's trusted name and the dedicated followers that followed have made the brand a leader in lifestyle and entertainment."
The sale does not include FanSided, a network of more than 300 sites divided into sports teams or TV shows and dedicated to fans of these teams or shows. This property, acquired by Meredith Corp. in 2015, is still for sale.
In a memo addressed to Sports Illustrated staff, the editor, Chris Stone, highlighted the opportunities offered by the new owners during the events. long-term video and audio; and play and games. He pointed out that Sports Illustrated would remain editorial independent and rigorous with the new owners.
"ABG is committed not only to ensuring the quality of magazine, website and video properties, but also to editorial independence within the current Sports Illustrated management team", Stone said.
The deal came a little over a year after Meredith Corp., with the help of billionaire brothers Koch, bought Time Inc. and then sold traditional titles such as Sports Illustrated, Time, Fortune and Money . Salesforce founder Marc Benioff acquired Time magazine in September for $ 190 million. Two months later, a holding company owned by Thai businessman Chatchaval Jiaravanon signed an agreement to buy Fortune for $ 150 million.
In a sales release, Meredith Corp. stated that she would use the proceeds of the sale to repay her debt. The company plans to repay about $ 900 million of debt by the end of next month, and an additional $ 100 million after the sale of FanSided and the Viant advertising platform.
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