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

UKRAINE CRISIS

REUTERS SHOWCASE

Pakistan Turmoil

Pakistan Turmoil

Pakistan parliament backs embattled prime minister as crisis deepens.  Full Article 

Gaza Conflict

Gaza Conflict

End of Gaza war doesn't translate into peace  Full Article 

Photo

Hamas vs Fatah

Hamas popularity surges as Palestinian rivalry flares  Full Article 

Scottish Independence

Scottish Independence

UK's fate in the balance as poll shows record support for Scottish independence  Full Article 

Syria Aid

Syria Aid

Record 4.1 million in Syria got food aid in August, U.N. says  Full Article 

NATO Deployment

NATO Deployment

Afghan turmoil threatens NATO's "mission accomplished" plans  Full Article 

Reuters India Mobile

Reuters India Mobile

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