Published On: Thu, Feb 14th, 2013

Time Warner set to dump magazines, including People, InStyle to Meredith Corp

Time Warner Inc. is in talks to divest most of its Time Inc. magazine group in a deal with Meredith Corp., reports the WSJ, potentially ending its long reign as the biggest U.S. magazine publisher.

President Obama TIME magazine person of the yearThe deal Time Warner would retain Time Magazine, Sports Illustrated and Fortune, but the rest of the magazines, including People, InStyle and Real Simple would join Meredith’s other titles (Better Homes and Gardens and Family Circle.)

The proposal calls for both companies to spin off their magazine businesses into a new company that would be publicly held. The spinoff structure has tax benefits for New York-based Time Warner, compared with an outright sale.

A Meredith spokesman said the company doesn’t comment “on rumors and speculation.”

The deal would mean big changes for the much smaller Meredith, which owns TV stations in addition to its magazines. The entire company, which is based in Des Moines, Iowa, has a market capitalization of about $1.7 billion; one banker said that Time Inc., which publishes 93 magazines world-wide, including 21 in the U.S., would be worth about $3 billion.

The People magazine franchise is considered to be the top prize in the deal.

It is thought to be the most profitable magazine in the world, but Time Inc doesn’t break out financial results by title.

Time Warner’s chairman and CEO, Jeffrey Bewkes, has been gradually downsizing the company. And Time Inc has been subject to recent cuts.



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- Writer and Co-Founder of The Global Dispatch, Brandon has been covering news, offering commentary for years, beginning professionally in 2003 on Crazed Fanboy before expanding into other blogs and sites. Appearing on several radio shows, Brandon has hosted Dispatch Radio, written his first novel (The Rise of the Templar) and completed the three years Global University program in Ministerial Studies to be a pastor. To Contact Brandon email [email protected] ATTN: BRANDON

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