Time Inc. Files For Separation From Time Warner
Publishing company Time Inc. filed regulatory paperwork on Friday to separate itself from Time Warner.
Time Warner said in March it planned to spin off Time Inc., the company behind such magazines as Sports Illustrated, Entertainment Weekly, Real Simple and the flagship weekly publication known simply as Time, which first launched in 1923.
Time also publishes People, which, according to Friday's filing, is "the largest magazine in the U.S. based on both readership and advertising revenues."
According to Friday's filing, Time Inc. generated $2.39 billion in revenue in the first nine months of the year, down from $2.47 billion during the same frame a year earlier. Net income was $135 million, unchanged from a year ago.
Time Inc. reported $63 million in cash and equivalents on its books and assets of $5.76 billion with debt of just $37 million.
Time Warner intends on completing the spin-off in the second quarter next year.
Joseph Ripp will lead Time Inc. as its CEO after the spin-off and Jeffery Bairstow has been named CFO.
Ripp will receive a base salary of $1 million with an additional bonus that has a target amount of $1.5 million annually. He has also been granted about $7.5 million in stock options and restricted stock units.
Time Warner said it will distribute all Time Inc. stock to Time Warner shareholders in a tax-free manner, though it hasn't decided on the exact number of shares.
The filing also lists several reasons for the spin-off, including that it will "allow investors to make independent decisions with respect to Time Warner and Time Inc. and will enable Time Inc. to achieve alignment with a more natural stockholder base."