Time Warner announced plans to separate itself from its Time Inc. magazine publishing arm, focusing the company on its TV networks, film and TV production businesses.
Time Inc., which had been in discussions with Meredith Corp., now wants to become an independent, publicly traded company in a transaction the media firm said it aims to complete by year-end.
"After a thorough review of options, we believe that a separation will better position both Time Warner and Time Inc," Time Warner CEO Jeff Bewkes said in a statement. "A complete spinoff 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 Warner previously executed similar spinoffs of Time Warner Cable and AOL. The transaction is expected to be tax free to Time Warner stockholders.
Time Inc. CEO Laura Lang will not continue as CEO of the new public company, but will stay on through the process and help identify a successor. "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.
Time Warner had been discussing a deal with Meredith Corp. to combine some of their magazine, but that plan appears dead for now.
In a statement Meredith CEO Stephen Lacy said: "At Time Warner's initiation we discussed combining our two portfolios; however, we respect Time Warner's decision and certainly remain open to continuing a dialogue on how our companies might work together on future opportunities."