This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.guardian.co.uk/media/2013/mar/07/time-warner-time-inc-meredith
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Time Warner to spin off Time Inc as Meredith talks stall | Time Warner to spin off Time Inc as Meredith talks stall |
| (about 7 hours later) | |
| Time Warner is to spin off its magazine unit Time Inc into a separate, publicly traded company after talks to sell the publisher behind People and Sports Illustrated fell through. | Time Warner is to spin off its magazine unit Time Inc into a separate, publicly traded company after talks to sell the publisher behind People and Sports Illustrated fell through. |
| The US media giant confirmed late on Wednesday that Time Inc would be relisted by the end of a year as a new company expected to incorporate Britain's biggest consumer magazines publisher, IPC Media. | The US media giant confirmed late on Wednesday that Time Inc would be relisted by the end of a year as a new company expected to incorporate Britain's biggest consumer magazines publisher, IPC Media. |
| Time Warner's move came after talks to sell most Time Inc titles to US lifestyle publisher Meredith apparently broke down. The Time Inc chief executive Laura Lang will be replaced by a new boss when the spin-off is complete. | Time Warner's move came after talks to sell most Time Inc titles to US lifestyle publisher Meredith apparently broke down. The Time Inc chief executive Laura Lang will be replaced by a new boss when the spin-off is complete. |
| Time Warner's chairman and chief executive, Jeff Bewkes, said the move would allow the New York-based media company to concentrate on its film and TV business. | |
| He said in a statement: "After a thorough review of options, we believe that a separation will better position both Time Warner and Time Inc. | He said in a statement: "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. | "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 standalone 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 will also benefit from the flexibility and focus of being a standalone 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." |
| In a statement released after Time Warner's announcement, Meredith confirmed it had held talks to purchase the company's lifestyle, style and entertainment titles "at Time Warner's initiation". | In a statement released after Time Warner's announcement, Meredith confirmed it had held talks to purchase the company's lifestyle, style and entertainment titles "at Time Warner's initiation". |
| Stephen Lacy, chairman and chief executive of Meredith, indicated that a deal in the future had not been ruled out. He said: "There are natural synergies between our two portfolios; however, we respect Time Warner's decision and certainly remain open to continuing a dialogue on how our companies might work together on future opportunities." | |
| Time Inc has been gradually trimmed back by Time Warner, including recent moves to shed 6% of its 8,000 global staff, prompting speculation it was being pruned ahead of a sale. | Time Inc has been gradually trimmed back by Time Warner, including recent moves to shed 6% of its 8,000 global staff, prompting speculation it was being pruned ahead of a sale. |
| The company began talks with Meredith about taking most of Time's lifestyle titles, such as InStyle and Real Simple, in a deal that reportedly valued Time Inc at $1.75bn, but without the flagship titles Sports Illustrated, Time, Fortune and Money. | The company began talks with Meredith about taking most of Time's lifestyle titles, such as InStyle and Real Simple, in a deal that reportedly valued Time Inc at $1.75bn, but without the flagship titles Sports Illustrated, Time, Fortune and Money. |
| It is understood that the sale would have included at least some of London-based IPC Media titles, which has a robust lifestyle division including Woman's Own and the joint venture Marie Claire. IPC is also home to What's on TV, NME, Nuts and several specialist titles. | It is understood that the sale would have included at least some of London-based IPC Media titles, which has a robust lifestyle division including Woman's Own and the joint venture Marie Claire. IPC is also home to What's on TV, NME, Nuts and several specialist titles. |
| A spokeswoman for IPC said on Thursday: "As you will see, Time Warner expects to complete the transaction by the end of the year. So it's business as usual at IPC and we have nothing else to add." | A spokeswoman for IPC said on Thursday: "As you will see, Time Warner expects to complete the transaction by the end of the year. So it's business as usual at IPC and we have nothing else to add." |
| Douglas McCabe, a publishing expert at Enders Analysis, said the move made a lot of sense for Time Warner, allowing it to optimise the value of Time Inc, but also its TV and film businesses. | |
| He said the fate of IPC remains unclear because it looks like a "London offshoot of a big US publishing empire". | |
| "IPC will feel better about the fact that it is staying within a business it knows wants them," he said. "IPC will actually be a more material part of a new publishing business than it perhaps feels in the empire as a whole". | |
| • To contact the MediaGuardian news desk email media@guardian.co.uk or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. If you are writing a comment for publication, please mark clearly "for publication". | • To contact the MediaGuardian news desk email media@guardian.co.uk or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. If you are writing a comment for publication, please mark clearly "for publication". |
| • To get the latest media news to your desktop or mobile, follow MediaGuardian on Twitter and Facebook | • To get the latest media news to your desktop or mobile, follow MediaGuardian on Twitter and Facebook |