Time Inc. Announces Plans To Sell 18 Print Titles
Ann Moore, CEO of Time Inc., announced today the company’s plans to sell 18 print titles from its Time4Media and Parenting groups. The announcement, which was made in a memo to her employees, will affect a total of 560 workers, including 440 in the Time4Media division and 120 in the Parenting Group. The sale will be brokered by J.P. Morgan.
The sale will eliminate the media company’s Time4Media division, which is home to Golf Magazine, Ski Magazine, Field & Stream, Outdoor Life, the Transworld publications, as well as Popular Science and This Old House. Time Warner purchased the division, formerly the Times Mirror Magazines, from Tribune in 2000 for $475 million. Time4Media President Thomas Beusse, who has heavily focused the division on digital media since taking the reins in January. Moore said Beusse will continue to helm the division until a sale is finalized.
The Time4 Media businesses for sale include:
- Popular Science
- Marine Group (Yachting, MotorBoating and SaltWater Sportsman)
- Time4 Outdoors (Field & Stream, Outdoor Life)
- TransWorld Media (TW Skateboarding, TW Snowboarding, TW Surf, TW Motocross, Ride BMX, Quad)
- Mountain Sports Media (Ski, Skiing, Warren Miller Entertainment)
The Parenting assets include:
The Time4Media titles collectively netted almost $639 million in PIB revenue last year. "While these titles are good performers, Time Inc. is focusing its energy, resources and investment on our largest and most profitable brands, brands that have demonstrated an ability to draw large audiences in print and digital form," Moore said in her memo. "Our recent acquisition of Golf.com and greater investment in CNNMoney.com, SI.com, People.com, Time.com, InStyle.com and Time Inc. Interactive are evidence of this focused strategy."
Golf, Golf.com, and This Old House Ventures, including This Old House television production and This Old House magazine, will be staying at Time Inc. In May, Beusse launched a production enterprise called Time4Entertainment and hired former president of RKO Pictures, Paul Speaker to run it. This enterprise will remain with the company under the leadership of Speaker, Moore said.
The news comes on the heels of two consecutive quarters of profit losses for the publishing arm of media giant TimeWarner, which posted a profit of $1 billion for the first half of the year, due to what management deemed the "outstanding" performance of the company’s cable, filmed entertainment and network holdings.
Time Inc. posted a 2 percent decline in revenues and an 11 percent fall in profits for the second quarter of the year. In the first quarter, its revenue was flat, while its operating income fell 12 percent. The company laid off 500 employees between December 2005 and April 2006.
With these divestments, Time Inc. will have 132 magazines worldwide and 32 in the U.S., including People, Sports Ilustrated, Life and InStyle. The media company’s PIB share will be approximately 20 percent, Moore said in the memo. Time Inc. Web sites receive more than 1.5 billion page views each month, she added.
2005 PIB revenue (in millions)
- Golf Magazine-$178.9
- Field and Stream-$80.2
- Outdoor Life-$31.3
- Popular Science-$81.2
- Ride BMX-$6.9
- This Old House-$61
- Transworld Skateboarding-$35.8
- Transworld Snowboarding-$21.2
- Transworld Surf-$10.4
- Salt Water Sportsman-$28.8
- Transworld Motocross-$7.7
Total: $638.9 million
- Babytalk – $74.7 million
- Parenting – $198.3 million
PIB Revenue Increase/Decrease Jan-Aug 2006 Vs. 2005
- Golf -3.3%
- Field and Stream -11.2%
- Outdoor Life -5.8%
- Pop Sci -11.7%
- Ski -2.8%
- Ride BMX -4.1%
- Skiing -16.9%
- This Old House -12.2%
- Transworld Skateboarding -11.7%
- Transworld Snowboarding -1.7%
- Transworld Surf +16.3%
- Transworld Motocross +82.9%
- Motorboating -16.2%
- Salt Water Sportsman -5.6%
- Babytalk +1.0%
- Parenting -10.5%
Source: Publishers Information Bureau