Time Inc. sells 18 magazines to Bonnier
EmptyNEW YORK -- Time Inc. said Thursday it is selling 18 of its smaller magazine titles including Popular Science, Field & Stream and Parenting to Swedish publisher Bonnier Magazine Group.
The sale marked the latest effort by the magazine company to restructure its business and adapt as readers and advertisers increasingly look to the Internet for news, entertainment and information.
Time Inc. originally put the magazines up for sale last fall, and the sale had been widely expected. Financial terms were not disclosed but the New York Post reported Thursday that the deal is expected to be valued at more than $200 million, which is below the $300 million Time was hoping to get when the titles were first put on the block.
The 18 titles are part of Time's Parenting group and Time4 Media.
Bonnier said the acquisition will make the company and its U.S. magazine partner, World Publications, one of the largest consumer publishing groups in the U.S. with 40 titles and annual revenue of more than $350 million.
Time said all of its editorial staff will remain at their current offices, primarily in New York, California and Colorado.
Like other magazine publishers, Time Inc. has been struggling amid the rapid changes occurring in reading habits and advertising spending as the Internet comes into its own as an advertising medium.
Time Inc. reported a 5.9% decline in profits for the nine-month period ending last September compared with the same period a year ago, as revenues slipped 0.6%.
The company has also sold off a book publishing division and said last week that it would eliminate nearly 300 jobs across its entire company. As part of those cuts, Time Inc.'s flagship publication, Time, will close its bureaus in Atlanta, Chicago and Los Angeles, although three correspondents will remain in Los Angeles and work from their homes.
The acquisition is subject to regulatory approval.
Shares of Time Warner added 4 cents to $22.56 in morning trading on the New York Stock Exchange.