Source, Time Inc. Statements on Settlement
Details of new deal.
Time Inc. and Source Interlink announced today that they have reached a multi-year distribution agreement, effectively settling Source’s antitrust lawsuit with Time Inc. and Time Warner Retail. It remains to be seen if the other companies named in the suit—American Media, Bauer, Curtis, Hachette, Hudson News, Kable Distribution and News Group—will follow suit, and settle, too.
Here are the statements from Time Inc. and Source.
February 19, 2009
Time Inc. has reached an agreement with Source Interlink to distribute Time Inc. magazines. The multi-year agreement provides benefits to both parties. Time Inc. is pleased with the new terms, which include no per-copy fee, and believes the agreement provides the foundation for a strong ongoing business relationship with Source.
Source Interlink Companies, Time Inc. and Time/Warner Retail Announce Settlement
Lawsuit Settled in Favor of Multi-Year Agreement
Bonita Springs, FL – February 19, 2009 – Source Interlink Companies (NASDAQ:SORC) today announced the settlement of its antitrust lawsuit against Time Inc. and Time/Warner Retail Sales & Marketing Inc. Using the strength of their long-standing association, the parties reached a multi-year agreement securing Source’s access to Time Inc. magazine products.
“I am happy to make this announcement because it means the continuation of what has been a mutually beneficial relationship. We have enjoyed working with our partners at Time and plan to keep working with them for many years to come”, declared Greg Mays, Chairman and CEO of Source. “This agreement is effective immediately and assures that we can continue to supply all our mainstream, specialty and international customers with the popular Time titles.”
“As we move ahead, the prospect of growth is clear. It is fully our intention to create a bond with our publishers and national distributors that is as strong as the relationship we have with our retail partners,” Mays added.
New Retail Business for Source Interlink Distribution
In a separate story, Source Interlink Companies today reported that its magazine distribution unit, Source Interlink Distribution (SID), has been awarded important new business from Wal-Mart Stores, Kroger / Fry’s Companies and Basha’s Supermarkets. This additional business increases SID’s store count by 662 stores in 9 states.
“We are extremely pleased to announce this expression of confidence from our retailer partners,” said Greg Mays, Chairman and CEO of Source. “The action of these leading retailers is particularly gratifying in light of the recent market disruptions. As the flow of product to our distribution network resumes, nearly all of our major retailers have reaffirmed their selection of SID as their exclusive supplier of magazine products. We feel this customer loyalty reflects their recognition of the great service we have provided them over the years. Our goals and those of our retail partners and publisher clients remain aligned. Finally, I want to acknowledge our employees for both their core commitment and their energy in building new business.”
In addition to SID, which is one of the largest mainstream magazine wholesalers in the US, Source also operates the largest distributor of CDs and DVDs, the largest publisher of enthusiast magazines, the largest distributor of magazines to bookstores and other specialty retailers, and the largest importer of foreign magazine titles to US newsstands.