Time Inc. to pursue its own strategic plan

OPTS NOT TO SELL

PAUL BARBAGALLO NEW YORK • Time Inc., the glossy-magazine publisher in turmoil and struggling to adapt to a digital world, has decided not to sell itself after months of discussions with potential acquirers.

“While Time Inc. had not initiated a process, the board of directors, consistent with its duties, evaluated a number of expressions of interest with the assistance of external advisers. Following that review, the board has determined that the company will continue to pursue its strategic plan,” the company said in a statement Friday.

Meredith Corp. and a group including Pamplona Capital Management and Jahm Najafi had been in the running to buy Time’s entire business, alongside at least two other suitors including one publicly listed company, Bloomberg reported in March. At that time, Time was moving nearer to a sale that would have valued the New York-based company at more than US$20 a share.

The announcement of the decision sent shares of Time plummeting 21 per cent to US$14.50 in early New York trading.

Under the strategic plan, Time plans to expand its online businesses, including streaming video, to persuade advertisers to pour money in its brands instead of upstart digital outlets, the firm said.

In recent months, Time has reorganized how it sells advertising, creating more custom content for sponsors and making it easier for marketers to buy ads across its magazine portfolio. Such ads — promotional content designed to look like editorial articles and videos — have become the lifeblood of digital media companies like BuzzFeed and Vice Media.

Time “is better-positioned to capitalize on this potential with its recent shift from a siloed, legacy publishing structure, to an integrated, enterprise platform structure,” chief executive Rich Battista said in the statement. “We are excited to execute on our plan.”

Time has also been on a buying spree to give its