Time Warner is opting to spin off its $3.4B magazine group, ending talks with Meredith Corp. about a potential deal for the titles.
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CEO Jeff Bewkes said in a statement that the separation would provide "strategic clarity" to TW, enabling it to concentrate on its faster growing cable TV and movie production businesses.
He believes Time Inc. will benefit as a stand-alone public company able to "attract a more natural stockholder base."
TW has experience in the spin-off business as evidenced by the separations of Time Warner Cable and AOL from the parent company.
Time Inc. CEO Laura Lang won't helm the publisher when the spin-off is completed by yearend.
She's decided to exit TW, believing a "different kind of CEO" will be needed for a new public company.
Time Inc. titles include Time, People, Sports Illustrated, Fortune, Real Simple andInStyle.
That collection of magazines reaches more than 110M people each month via print and another 50M via the `Net.
Meredith said merger negotiations began at "Time Warner's initiation," and that it remains open to discuss "natural synergies between our two portfolios."
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