Time Warner announced today that its Board of Directors has initiated plans to legally separate Time Inc. from operations. Time Inc., through this transaction, will become an independent, publicly traded company. Time Warner hopes for this transaction to be complete by the end of 2013.
"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. Time Inc. 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 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,” said Jeff Bewkes, Chairman and CEO, Time Warner.
Time Inc. reaches approximately half of US adults and millions of global consumers monthly with their multi-platform publishing and branded content. After the transaction Time Inc. expects to continue its excelled performance.
Time Inc. is currently run by CEO Laura Lang. Lang plans to help Bewkes find a successor for the new company through the separation transition. "Laura indicated to me that we should find a different kind of CEO for this new public company, and I respect her decision," Bewkes said. "She has been a great partner who has given Time Inc. forward momentum to make this transition possible, and I look forward to working with her to select the right leader to head the company as an independent entity."
The transaction is still subject to regulatory approval and final approval by Time Warner’s Board of Directors.
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