Time Warner Inc. Announces Plan to Separate Time Inc.

Wed Mar 6, 2013 5:38pm EST

* Reuters is not responsible for the content in this press release.

http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20130306:nBw066501a

NEW YORK--(Business Wire)--
Time Warner Inc. (NYSE:TWX) today announced that its Board of Directors has
authorized management to proceed with plans for the complete legal and
structural separation of Time Inc. from Time Warner. Following the proposed
transaction, Time Inc. would be an independent, publicly traded company. Time
Warner aims to complete the proposed transaction by the end of the calendar
year. 

Time Warner Chairman and Chief Executive Officer Jeff Bewkes said: "After a
thorough review of options, we believe that a separation will better position
both Time Warner and Time Inc. 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. As we saw with the prior spin-offs of Time Warner
Cable and AOL, we expect the separation will create additional value for our
stockholders." 

Time Inc. CEO Laura Lang has advised Time Warner that she will stay on through
this process and until after a successor has been identified. "Laura indicated
to me that we should find a different kind of CEO for this new public company,
and I respect her decision," Bewkes said. "She has been a great partner who has
given Time Inc. forward momentum to make this transition possible, and I look
forward to working with her to select the right leader to head the company as an
independent entity." 

After the proposed separation is completed, Time Inc. will continue its mission
as the leading multi-platform publishing and branded content company, reaching
nearly half of U.S. adults each month and millions of consumers around the
world. 

The proposed transaction will be structured as tax-free to Time Warner
stockholders. The transaction is contingent on the satisfaction of a number of
conditions, including completion of the review process by the Securities and
Exchange Commission of required filings under applicable securities regulations
and the final approval of transaction terms by Time Warner`s Board of Directors.


Caution Concerning Forward-Looking Statements

This document includes forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements include, but are not limited to, statements about the plans,
objectives, expectations and intentions of Time Warner, including the benefits
of the proposed separation of Time Inc. from Time Warner, and other statements
that are not historical facts. These statements are based on the current
expectations and beliefs of Time Warner's management and are subject to
uncertainty and changes in circumstances. Time Warner cautions readers that any
forward-looking information is not a guarantee of future performance and that
actual results may vary materially from those expressed or implied by the
statements herein due to the conditions to the consummation of the proposed
separation of Time Inc. from Time Warner, and changes in economic, business,
competitive, technological, strategic and/or regulatory factors, as well as
other factors affecting the operation of the other businesses of Time Warner and
Time Inc.`s business. More detailed information about these factors may be found
in filings by Time Warner with the Securities and Exchange Commission, including
its most recent Annual Report on Form 10-K in the sections entitled "Caution
Concerning Forward-Looking Statements" and "Risk Factors." Various other factors
could cause actual results to differ from those set forth in the forward-looking
statements, including, without limitation, the risk that the anticipated
benefits from the proposed separation may not be fully realized or may take
longer to realize than expected. Time Warner is under no obligation to, and
expressly disclaims any such obligation to, update or alter its forward-looking
statements, whether as a result of new information, future events, or otherwise.


About Time Warner Inc.

Time Warner Inc., a global leader in media and entertainment with businesses in
television networks, film and TV entertainment and publishing, uses its
industry-leading operating scale and brands to create, package and deliver
high-quality content worldwide through multiple distribution outlets. 

About Time Inc.

Time Inc. is one of the largest branded media companies in the world. The
company's magazines reach more than 110 million Americans each month, and its
websites attract nearly 50 million unique visitors each month. With influential
brands such as TIME, PEOPLE, SPORTS ILLUSTRATED, InStyle, and REAL SIMPLE, Time
Inc. is home to celebrated events and franchises including the FORTUNE 500, TIME
100, PEOPLE's Most Beautiful and SPORTS ILLUSTRATED'S Sportsman of the Year.

Time Warner Inc.
Keith Cocozza 212-484-7482
Keith.Cocozza@timewarner.com

Copyright Business Wire 2013

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.