A Historical and Current Fundamental Analysis of Meredith Corporation (MDP)
A fundamental analysis of Meredith Corporation, historically traded under the ticker MDP, is essential for investors to understand its current status. The key takeaway is that the original, diversified Meredith Corporation no longer exists as a publicly traded company in its former form due to major asset sales and a subsequent acquisition in 2021-2022.
The former Meredith Corporation was broken up into two main parts: its Local Media Group (LMG) (TV stations) and its National Media Group (NMG) (magazines and digital). This corporate action completely redefined the entity once known as MDP.
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| A Historical and Current Fundamental Analysis of Meredith Corporation (MDP) |
I. Corporate Restructuring: The Breakup of MDP
The foundational aspect of any fundamental analysis for MDP must acknowledge the series of transactions completed in late 2021:
A. Sale of Local Media Group (LMG)
Asset: The LMG, which comprised Meredith’s portfolio of television broadcasting stations across the US.
Transaction: The LMG was sold to Gray Television Inc. for $2.7 billion in cash. This move focused the remaining business entirely on its publishing and digital media assets.
B. Sale and Integration of National Media Group (NMG)
Asset: The NMG housed iconic magazine titles like People, Better Homes and Gardens, Allrecipes, and their corresponding digital properties.
Transaction: The NMG was spun off into a stand-alone publicly traded company, which briefly retained the Meredith name. However, this entity was almost immediately acquired by IAC Inc. (InterActiveCorp) and merged with its Dotdash digital publishing business to form Dotdash Meredith.
Stock Status: Following the completion of these deals on December 1, 2021, the original Meredith Corporation (MDP) stock was delisted from the New York Stock Exchange. Shareholders received a mix of cash and shares in the new entities.
Conclusion for Investors: The ticker symbol MDP is now essentially defunct and any current quotes or historical data relating to the original diversified media conglomerate are mostly for archival or comparative purposes. The core assets now reside under Dotdash Meredith, a subsidiary of the publicly traded IAC (IAC).
II. Fundamental Metrics of the Former MDP (Pre-2022)
To understand the valuation of the assets before the breakup, here are the final fundamental characteristics of the former MDP, which specialized in advertising and subscription revenue:
| Metric | Pre-Acquisition Value (Approx. Late 2021) | Interpretation |
| P/E Ratio (TTM) | Suggested a reasonable valuation relative to general market multiples at the time, indicating its valuation reflected the challenging landscape of print media but was supported by the profitable Local Media segment. | |
| Market Capitalization | This size made it a significant player in the mid-tier media space. | |
| Business Model | Dual Revenue Stream (Advertising & Consumer/Digital) | A balance between volatile advertising sales (especially for local TV) and more stable consumer revenue (magazine subscriptions and brand licensing). |
| Debt / Equity | Meredith historically carried substantial debt, often due to acquisitions (notably Time Inc.). Deleveraging was a key strategic goal prior to the breakup. |
III. Current Business Analysis: Dotdash Meredith (IAC Subsidiary)
The National Media Group assets, which form the current consumer publishing business, can be fundamentally analyzed through the lens of its parent company, IAC (NASDAQ: IAC).
A. Revenue Model: Digital Transformation
The new entity, Dotdash Meredith, represents a strategic pivot:
Shift to Digital-First: The focus has aggressively shifted from print to digital. This involves moving established brands (People, Better Homes & Gardens) onto a modern, performance-driven digital platform.
Monetization Strategy: The revenue stream is primarily digital advertising, performance marketing (affiliate revenue), and direct consumer commerce.
Efficiency Focus: IAC's strategy has involved cutting high-cost print operations. Several former Meredith magazines, such as Entertainment Weekly and InStyle, have ceased print circulation to operate as digital-only brands, prioritizing the higher profit margins of digital content.
B. Growth and Profitability (within IAC)
Growth Driver: Dotdash Meredith aims for growth by improving the Quality and Speed of the digital experience, which drives search engine optimization (SEO) and higher ad rates.
Fundamental Challenge: The business must successfully transition its massive, but declining, print readership into loyal, high-value digital users to justify the acquisition price. Performance is tied directly to the health of the digital advertising market.
IV. Summary and Investment Thesis
The stock of the former Meredith Corporation (MDP) cannot be analyzed for future investment. Any analysis must be directed toward the parent company IAC and its Dotdash Meredith segment.
The fundamental thesis for the acquired assets is: Can a digitally native operator (IAC) successfully apply its high-margin, performance-driven digital playbook to the iconic, but print-heavy, brands of the former Meredith Corporation? If successful, these assets will contribute significantly to IAC’s overall revenue and profitability, specifically within its digital media segment.
The video below offers an analyst's fundamental perspective on Meredith Corporation before its definitive corporate actions.
Meredith Corporation ($MDP) - Quick Stock Analysis discusses the fundamental analysis of the former Meredith Corporation's stock and its print media business before its major asset sales.