Time Warner in talks with Meredith on magazines - source

Thu Feb 14, 2013 4:32am IST

A purse containing Time magazine in Tampa, Florida August 28, 2012. REUTERS/Eric Thayer

A purse containing Time magazine in Tampa, Florida August 28, 2012.

Credit: Reuters/Eric Thayer

Related Topics

Stocks

   

(Reuters) - Time Warner Inc (TWX.N) is in talks to sell the majority of its magazine division to Meredith Corp (MDP.N), according to a source familiar with the situation.

The source, who asked not to be named, said the talks are in the early stages and were "very fluid." The valuation being ascribed to Time Inc, the nation's largest magazine publisher with titles such as Time, Sports Illustrated and People, ranges from $2 billion to $3.5 billion.

A report in Fortune magazine, one of Time Inc's titles, said a meeting with a potential buyer was scheduled for today.

A Time Inc representative did not immediately return a request for comment. A representative for Meredith declined comment.

Under one scenerio being discussed, Meredith would acquire all the Time Inc titles outside of news and sports. These would include In Style, Real Simple, and People, all of which fit with Meredith's strategic focus on magazines oriented toward women.

The source said Time Warner sees an upside in retaining Time, Sports Illustrated and Fortune, iconic brands among the leaders in their categories. The conglomerate thinks it also could leverage those titles into ancillary businesses such as conferences.

In another potential scenario, both Meredith and Time Inc would contribute magazines to a newly formed independent company in which each would hold a stake, said the source, who added that a private equity firm could also be brought in to help capitalize that type of venture.

Magazines and newspapers are dealing with declining advertising revenue as more readers and advertisers migrate to digital formats.

In 2012, revenue at Time Inc dropped 7 percent to $3.4 billion on declines in advertising and subscription revenue. Operating income fell 25 percent for the same period.

Time Inc announced in January it planned to cut about 500 jobs, or about 6 percent of its workforce. (Additional reporting By Jennifer Saba in New York; Editing by Gerald E. McCormick and David Gregorio)

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

  • Most Popular
  • Most Shared

Hong Kong Protests

REUTERS SHOWCASE

India-U.S. Ties

India-U.S. Ties

Obama, Modi discuss trade, climate, Islamic State at White House  Full Article 

Fighting Islamic State

Fighting Islamic State

Kurds seize Iraq/Syria border post; Sunni tribe joins fight against Islamic State  Full Article 

Ebola Outbreak

Ebola Outbreak

UN Ebola mission head wants significant progress in 60 days  Full Article 

Anti-Islamist Pact

Anti-Islamist Pact

Hardline Buddhists in Myanmar, Sri Lanka strike anti-Islamist pact   Full Article 

Palestinian Occupation

Palestinian Occupation

Jewish settlers occupy Palestinian homes in Old City's shadow  Full Article 

White House Breach

White House Breach

U.S. lawmakers scold Secret Service over White House breach  Full Article 

Rohingya Plan

Rohingya Plan

Myanmar confirms controversial Rohingya plan at United Nations  Full Article 

U.S.-Afghan Pact

U.S.-Afghan Pact

U.S. signs pact to keep troops in Afghanistan past 2014  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage