Time Warner to spin off publishing unit Time Inc
Chief executive Jeff Bewkes yesterday said in a statement that a spinoff "provides strategic clarity" for the media-entertainment giant.
The announcement comes after unsuccessful talks to sell some of the titles in the Time Inc. group, and as rival News Corp. is undergoing a similar split of its entertainment and publishing operations.
Time Warner said its board had authorised management "to proceed with plans for the complete legal and structural separation of Time Inc. from Time Warner" which would make the publishing unit a "an independent, publicly traded company."
The company publishes 21 US magazines, including its flagship Time magazine, People, Fortune and Sports Illustrated. It has 25 websites and several international
magazines including global editions of Time and Fortune and publishing operations in Britain and Mexico.
Bewkes said that "after a thorough review of options, we believe that a separation will better position both Time Warner and Time Inc."
He added that "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., he said, 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
Time Inc. chief executive Laura Lang has agreed to
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