LA Times: Time Warner is spinning off its magazine unit Time Inc. into a separate, publicly traded company.
“After a thorough review of options, we believe that a separation will better position both Time Warner and Time Inc.," said Time Warner Chief Executive Jeff Bewkes, who added that the move will allow the company to "focus entirely on our television networks and film and TV production businesses" and give Time Inc. "the flexibility and focus of being a stand-alone public company."
The move marks the end of an era for the company. Founded in 1922 by Henry Luce, Time Inc. started as one magazine and grew into an empire of more than 100 titles. Along the way it created the pay cable channel HBO, and swallowed Warner Communications and Turner Broadcasting.
But the magazine industry has been struggling for years, and sentimentality wasn't enough for Bewkes to keep Time Inc. In 2012, Time Inc. had revenues of $3.4 billion, a decline of 7%. Operating income fell 25% to $420 million.