7 Mar 2013

Time Warner to spin off magazine unit

1:14 pm on 7 March 2013

Time Warner is to dispose of its publishing arm Time Inc by the end of the year and focus on its television and film operations.

In a statement on Wednesday, chief executive Jeff Bewkes said that the board of the conglomerate had authorised management "to proceed with plans for the complete legal and structural separation of Time Inc from Time Warner".

This would make the publishing unit a "an independent, publicly traded company."

The company publishes 21 US magazines, including Time magazine, People, Fortune and Sports Illustrated.

It has 25 websites and several international magazines and publishing operations in Britain and Mexico.

Mr Bewkes said "a complete spin-off 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."

AAP reprots the publishing industry is grappling with a steep drop in print advertising revenue, steadily declining circulation and the migration of readers to free news online.