“Time Warner Inc. TWX +0.67% is in talks to divest itself of most of its magazine group to Meredith Corp., MDP -0.13% say people familiar with the matter, keeping only Time, Sports Illustrated and Fortune titles.
Meredith, which owns magazines such as Better Homes and Gardens, is mostly focused on women’s titles. The addition of Time Inc.’s titles would give it a much stronger presence in that part of the market. Time Inc. owns People, InStyle and Real Simple, among other titles.
Time Inc. has struggled in recent years amid an industrywide slowdown in print advertising. The division’s revenues fell 7% in 2012 to $3.4 billion and operating income declined 25% to $420 million due to lower advertising and subscription revenues.
Time Inc. recently announced plans to reduce its workforce by 6% in an effort to cut costs—and that action is expected to lead to a $60 million restructuring charge in the first quarter.
News that Time Warner was exploring a sale of Time Inc. was reported earlier Wednesday by Fortune magazine, which is owned by the publishing company.”Comments »