USA TODAY International Edition
Time Inc. opts not to sell; shares fall sharply
Firm says it heard bids but never truly began sales process
After several months of listening to bidders seeking to acquire the media company, Time Inc. will remain on its own. The company’s board of directors evaluated several bids but decided Time Inc. will pursue a strategic plan of its own, the company said Friday.
“Time Inc. is one of the world’s leading multi- platform media companies, engaging over 170 million U. S. consumers across digital and print every month through a portfolio of premium, iconic brands,” John Fahey, the company’s lead independent director, said in a statement. “We strongly believe in the future and potential of this Company. The Board has full confidence in Time Inc. President and CEO Rich Battista and the management team to execute on the strategic plan.”
Time Inc., which is the nation’s largest magazine publisher, is turning the page after months of speculation that the company might sell all or part of the company. Despite “a number of expressions of interest” in the company, Time Inc. never officially initiated a sales process, it said Friday.
In November 2016, a bidding group led by Edgar Bronfman Jr., the former chairman and CEO of Warner Music, and Len Blavatnik’s Access Industries offered to buy the company at $ 18 per share. The group dropped its bid last month.
Another interested bidder was Meredith Corp., which publishes Better Homes & Gardens, Family Circle and Shape and also has 17 TV stations. Meredith Corp. reportedly sought to merge four years ago with Time Inc., which was spun off from Time Warner in June 2014.
During the bidding process, Time maintained that it could choose not to proceed with a sale.
Time shares fell 16.94% in trading Friday to $ 15.20.
Among Time Inc.’ s wellknown brands are Time magazine, Fortune, People and Sports Illustrated. The publisher has seen print ad sales and circulation declines; its 2016 revenue fell about 1% to $ 3.08 billion. However, digital advertising revenue rose to $ 512 million in 2016, spurring an overall 3% increase in ad revenues.