Time Inc. Frenzy Ends?
So the excitement is finally over. Maybe. Between its layoffs and the sale of 18 of its magazines, Time Inc. has had no shortage of headlines over the past few months. Whether the company is done laying off remains to be seen, but at least the question of who will buy the magazines from its Time4Media and Parenting groups has been answered. And the sale of the publications to Bonnier Magazine Group and their merger with World Publications is good news for Time Inc. and for the magazines it's shedding.
For one, it gives Time Inc. executives the opportunity to focus their full attention on repositioning the company for multimedia growth. Time CEO Ann Moore has had to deal with a tremendous amount of pressure in the past few months from the media, from her employees and most of all from Time Warner executives who have been pressuring her for the better part of a year to boost profitability in the companyâ€™s publishing segment.
As for Time4Media and the Parenting groups, they have a home with a new magazine company â€“ and a growing company at that - that plans to leave them in New York and leave the employees â€“ at least the non-executive employees â€“ in place. World Publications also will give magazines like Field & Stream, Parenting, and the Transworld publications an opportunity to grow that they didnâ€™t have at Time Inc. As one M&A source put it, â€śIf you have Surf magazine and Field & Stream competing with People magazine for online resources, who do you think is going to get them?â€ť