Time Warner is spinning off Time Inc.
Magazine publisher will become a stand-alone public company
March 7, 2013
Time Warner is leaving the magazine business.
The company will spin off Time Inc., its struggling magazine division, into its own separate, publicly traded company rather than selling off many of its assets and hanging onto a few top titles.
The decision, announced yesterday, came after months of talks between Time Warner and Meredith, the nation’s second largest publisher, over a deal that would have seen Meredith acquire the bulk of Time Inc.’s publications.
That deal would have left Time Warner with Time, Sports Illustrated, Fortune and Money.
But ultimately the company decided it would rather exit the money-losing magazine industry entirely.
“After a thorough review of options, we believe that a separation will better position both Time Warner and Time Inc.,” said Time Warner chairman Jeff Bewkes in a statement.
“A complete spin-off of Time Inc. provides strategic clarity for Time Warner Inc., enabling us to focus entirely on our television networks and film and TV production businesses, and improves our growth profile. Time Inc. will also benefit from the flexibility and focus of being a stand-alone public company and will now be able to attract a more natural stockholder base.”
Laura Lang, who joined Time Inc. as chief executive officer last year, will stay with the company through the transition and then take her leave.
Time Warner has been divesting itself of non-core business for years, splitting with AOL and selling off Time Warner Cable, Warner Music Group and Time Warner Book group.
It reflects a greater industry trend of separating out publishing interests, which have been a drag on corporate profits. News Corp., for instance, is spinning off its own print unit later this year.
Time Inc. has been struggling for some time. Revenue has dropped by nearly a third over the past five years, thousands of employees have been laid off, and advertising and circulation for many of its titles are down.
Meredith yesterday acknowledged that it had been in talks with Time Inc. Some had found the potential pairing of Time Inc., the world’s largest publisher with slick brands like People and InStyle, an odd fit with Meredith, known for the folksy appeal of publications like Better Homes & Gardens and Family Circle.
But ultimately the stumbling block was Time Warner’s desire to exit publishing entirely.
Time Warner would have received more than $1 billion in the deal, but it still would have been saddled with the four core titles that Meredith was not interested in, forcing the company to stay in a business that it no longer wanted.
Spinning off the division and getting rid of every title ultimately made more sense.
Tags: aol, cable, meredith, own, publishing, spin, time inc, time inc ipad, time inc. magazines, time inc. magazines spinoff, time inc. spinoff, time warner, Time Warner Inc, time warner spinoff, tv, TW
New way to measure magazine audiences
Why programmatic ad buying is so hot
The lasting wisdom of John Mack Carter
‘Stalker,’ short on chills, fewer thrills
So, what’s the future for celebrity magazines?
One final tribute to the late Joan Rivers
Facebook’s new ad program Atlas is finally here
Study: Apple dominates the mobile market
‘Red Band’ rebounds with L+3 viewing
Big deal: ‘Tiger’ sequel going straight to Netflix
Heater for Jeter: Last game lifts YES Network
Big premiere bumps for ‘Family Guy’ and ‘Once’
This week’s top movies, songs and books
- Gene Paek becomes executive digital director at TDA_Boulder
- Haley Greenwald-Gonella becomes marketing manager at Giant Spoon
- Fox executive director of publicity Josh Governale exits
- Joanna Coles and Donna Kalajian Lagani join Seventeen
- Jayne Jamison, Sue Katzen and Jill Seelig shift roles at Hearst
- Justin Squezello becomes CFO at Magnetic
- John Geehreng becomes senior flame artist at Click 3X
- Kal Penn becomes special correspondent at Fusion
- Angela Kinsey joins TBS's 'Your Family or Mine'
- Josh Holloway joins USA's drama pilot 'Colony'
This week’s top movies, songs and books
This week’s daypart ratings
This week’s cable ratings
This week’s broadcast ratings
This month’s new media traffic data
This week’s younger viewer ratings
Media assistant position in Boise, Idaho
Online media buyer position in San Francisco
Senior media planner/buyer job in Des Moines
Needed: Inside multimedia sales rep in Mass.
Radio media buyer opening in Orange, California