We are investigating Meredith Corporation (MDP) (“Meredith” or the “Company”) for potential violations of the federal securities laws.
In January 2018, Meredith acquired Time Inc. (“Time”) for $3.2 billion. On September 5, 2019, Meredith stated that it expected fiscal 2020 adjusted EBITDA in the range of $640 million to $675 million, significantly below analyst expectations of $793 million. Meredith cited plans to increase spending to improve the operations of Time, as the business was not as profitable as expected. On this news, Meredith’s stock price fell $10.14 per share, or over 23%, to close at $33.68 per share on September 5, 2019.