Barry Diller’s media group is ending print editions of brilliant sixes it acquired when it took over Meredith Corp. last year.
Diller’s company stops printing Entertainment Weekly, InStyle, EatingWell, Health, Parents and People en Español.
IAC confirmed the news, which was first reported by The Wall Street Journal.
IAC bought People-Magazine publisher Meredith for $2.7 billion last year and combined it with its Dotdash digital division to form Dotdash Meredith.
Dotdash Meredith CEO Neil Vogel announced the news Wednesday via a memo to staff, saying the move would help transform the publications into digital-only brands.
Vogel also said the moves would result in approximately 200 job losses, which represents less than 5% of Dotdash Meredith’s total workforce, a spokeswoman added. The company said the April issues of the six magazines would be their last print editions.
“We’ve said from the start that buying Meredith was about buying brands, not magazines or websites,” Vogel said in her memo. “It is no news to anyone that there has been a pronounced shift in readership and advertising from print to digital, and as a result, for a few major brands, print no longer serves the purpose. principal of the brand.”
He continued, “Today’s step is not an exercise in cost savings and it’s not about capturing synergies or any other acquisition jargon. It’s about embracing the inevitable digital future for the brands involved.
The decision to pull the plug on six glossy papers comes as magazine and newspaper publishers have struggled with declining print demand in recent years.
Print has also faced stiff competition from advertising giants like Google and Facebook, which dominate the ad space. The pandemic has only exacerbated the decline of print media, bringing newsstand sales to a virtual halt as readers choose to get their news and entertainment online.
Although media watchers whispered that the acquisition of Meredith by IAC, a company known for its digital brands, likely spelled the death knell for its brilliance, the company swore it was committed to Meredith’s brands, including the printed product.
“Opponents will interpret this as another nail in the printing coffin,” Vogel said in his Wednesday memo. “They couldn’t be more wrong.”
Vogel said the company plans to invest in its remaining 19 print magazines, including People, Better Homes & Gardens and Southern Living, by improving paper quality and trim sizes. Dotdash Meredith also plans to invest $80 million in 2022 in content across all brands.
Vogel said the company has more than 100 open positions in editorial, engineering, product, design and e-commerce, some of which it hopes to fill with people whose roles have been changed. removed.
Prior to the Meredith deal, Dotdash, which includes digital sites such as The Spruce, Serious Eats and TripSavvy, reached approximately 100 million readers through its 14 media brands.
IAC said the combined company, including Meredith’s portfolio of more than 40 brands, reaches nearly 200 million online consumers per month. Shares of the company rose more than 4.3% on Wednesday, outpacing the broader market, which rose just 1%.