Return to its roots

‘Black’ Essence

Essence magazine is returning to full black ownership for the first time in nearly two decades.

Time Inc. has sold Essence Communications Group, which includes the 48-yearold magazine aimed at African-American women, as well as a music festival, to a new, black-owned business group led by Richelieu Dennis, founder of beauty and skincare firm Sundial Brands, the companies announced. Terms were not disclosed. Dennis, who founded Sundial 26 years ago, sold control of the company to Unilever in November but remains its CEO. At that time, Dennis and Unilever established a $50 million “New Voices Fund” to “empower women of color entrepreneurs.”

Time purchased a 49-percent stake in the magazine in 2000 from founder Ed Lewis and purchased the remaining 51 percent five years later.

Michelle Ebanks, the president of Essence at Time Inc., will remain at the helm and have a seat on the board of directors of the new company, to be called Essence Ventures.

“We are excited to be able to return this culturally relevant and historically significant platform to ownership by the people and the consumers whom it serves,” Dennis said in a statement.

Time Inc. said all existing employees will be retained by the new owners and that the existing executive team will have an equity stake in the new business.

Initially, when Time was trying to sell off assets and remain independent, it said it was seeking to sell just a majority interest in Essence, presumably so a new owner could tap into cost savings as part of a big publishing company.

That strategy changed in November with the announcement that Des Moines, Iowa-based Meredith Corp. was buying Time Inc. for $2.8 billion.

The former publishing giant is also looking to sell Golf and Golf.com — and talks are said to be continuing on that front with real estate and banking mogul Howard Milstein. Neither Time nor Milstein has confirmed that development.

Also on the block are its UK magazines, which insiders say are the subject of talks between the company and a private equity firm. The two sides, though, haven’t confirmed the negotiations.

All sales are expected to close before Meredith absorbs the fabled publisher of Time, Fortune, Sports Illustrated, InStyle, People and other titles — and ditches the 93-year-old Time Inc. brand name from the US publishing scene.