Nov 22 Time Warner Inc moved another
step closer to spinning off its magazine assets as Time Inc, the
publisher of People, Fortune and the eponymous newsweekly Time,
filed with regulators on Friday to list itself as a standalone
The filing indicated that Time Inc would list its common
stock in 2014 but did not reveal the number of shares to be sold
or the symbol they would be traded under.
Time Inc, which also publishes the Sports Illustrated
magazine, reported revenue of $2.39 billion for the nine months
ended September, more than half of which came from advertising.
The company reported net profit of $135 million for the
period and long-term debt of $37 million.
Following the spin off, Time Warner will own no equity
interest in Time Inc.
Time Warner's move to spin off its publishing business
underscores the challenges besetting the print industry.
Magazines have been hit with unprecedented declines in
readership in recent years as people turn to smartphones and
tablets to read and advertisers look to other media to place
dollars beside print.
Investors have been pushing Time Warner CEO Jeff Bewkes for
years to hive off Time Inc, which is considered a slow growth,
Spinning off publishing assets has proven a popular choice
among media conglomerates this year. News Corp split
its entertainment and TV companies, now known as 21st Century
Fox, from its newspapers and book publishing units.
Tribune Co is following suit and expects to hive
off its newspapers from its more lucrative broadcast TV
The moves are aimed at separating high-growth areas like
cable TV from slower and, in many cases, declining media
properties like magazines and newspapers.
Time Warner has been shedding properties and Time Inc marks
one in a string of many that includes the spin-offs of AOL
and Time Warner Cable.
Time Warner expects the spin-off to occur in the second
quarter next year. In September, Joe Ripp was appointed Chief
Executive Officer of Time Inc.