Time, Inc. To Embrace Or Time, Inc. To Refrain From Embracing?

To everything there is a season, and the season for magazines has passed and will not return.  In the summer of 2014, Time Warner(TWX) spun off Time, Inc.(TIME), its magazine publishing division.  Joe Ripp, the CEO who presided over the spinoff, valiantly tried to cut costs and move to digital, but his efforts fell short. This summer, he was “ripp-ed” from the headlines, putatively stepping down for health reasons. The company and its stock continued to languish until the NY Post reported last week that a group led by Seagram’s heir Edgar Bronfman, Jr. had offered $18 a share in cash to buy the company. This offer represented a 30% premium to Friday’s price, and is above the company’s 52 week high. The offer from the group, which also included Len Blavatnik and Ynon Kreiz, was rejected by Time’s board.

Shareholders seem to believe that the company is now in play and there will ultimately be a deal. Since the story broke, the stock has risen over 20%. The offer was well below the company’s post spinoff high, but seems quite generous given the struggles of the past few quarters.  Hedge fund Jana Partners is a major holder of the stock and will likely be applying pressure to consummate a sale.

Disclosure: The author holds no position in any stock mentioned

5 thoughts on “Time, Inc. To Embrace Or Time, Inc. To Refrain From Embracing?

  1. Jake Chazan

    It’s interesting to note the Bronfman’s getting back into action (maybe that have been in action, but I just haven’t seen them). I fail to see what the attraction is of the “print” stocks given that virtually all of them are languishing. Maybe they see something that no one else does in terms of assets or goodwill.

    This reminds me of Conrad Black (the Canadian who was jailed in the US) who put together a whole bunch of newspaper properties around the world. Conrad was always a guy that was into owning newspapers. If I recall, nothing came of it other than him going to jail.

Comments are closed.