Time Warner Inc. Announces Plan to Separate Time Inc.
Time Warner Inc. (NYSE:TWX) today announced that its Board of Directors
has authorized management to proceed with plans for the complete legal
and structural separation of Time Inc. from Time Warner. Following the
proposed transaction, Time Inc. would be an independent, publicly traded
company. Time Warner aims to complete the proposed transaction by the
end of the calendar year.
Time Warner Chairman and Chief Executive Officer Jeff Bewkes said:
“After a thorough review of options, we believe that a separation will
better position both Time Warner and Time Inc. A complete spin-off of
Time Inc. provides strategic clarity for Time Warner Inc., enabling us
to focus entirely on our television networks and film and TV production
businesses, and improves our growth profile. Time Inc. will also benefit
from the flexibility and focus of being a stand-alone public company and
will now be able to attract a more natural stockholder base. As we saw
with the prior spin-offs of Time Warner Cable and AOL, we expect the
separation will create additional value for our stockholders.”
Time Inc. CEO Laura Lang has advised Time Warner that she will stay on
through this process and until after a successor has been identified.
“Laura indicated to me that we should find a different kind of CEO for
this new public company, and I respect her decision,” Bewkes said. “She
has been a great partner who has given Time Inc. forward momentum to
make this transition possible, and I look forward to working with her to
select the right leader to head the company as an independent entity.”
After the proposed separation is completed, Time Inc. will continue its
mission as the leading multi-platform publishing and branded content
company, reaching nearly half of U.S. adults each month and millions of
consumers around the world.
The proposed transaction will be structured as tax-free to Time Warner
stockholders. The transaction is contingent on the satisfaction of a
number of conditions, including completion of the review process by the
Securities and Exchange Commission of required filings under applicable
securities regulations and the final approval of transaction terms by
Time Warner’s Board of Directors.
Caution Concerning Forward-Looking Statements
This document includes forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements include, but are not limited to, statements
about the plans, objectives, expectations and intentions of Time Warner,
including the benefits of the proposed separation of Time Inc. from Time
Warner, and other statements that are not historical facts. These
statements are based on the current expectations and beliefs of Time
Warner's management and are subject to uncertainty and changes in
circumstances. Time Warner cautions readers that any forward-looking
information is not a guarantee of future performance and that actual
results may vary materially from those expressed or implied by the
statements herein due to the conditions to the consummation of the
proposed separation of Time Inc. from Time Warner, and changes in
economic, business, competitive, technological, strategic and/or
regulatory factors, as well as other factors affecting the operation of
the other businesses of Time Warner and Time Inc.’s business. More
detailed information about these factors may be found in filings by Time
Warner with the Securities and Exchange Commission, including its most
recent Annual Report on Form 10-K in the sections entitled "Caution
Concerning Forward-Looking Statements" and "Risk Factors." Various other
factors could cause actual results to differ from those set forth in the
forward-looking statements, including, without limitation, the risk that
the anticipated benefits from the proposed separation may not be fully
realized or may take longer to realize than expected. Time Warner is
under no obligation to, and expressly disclaims any such obligation to,
update or alter its forward-looking statements, whether as a result of
new information, future events, or otherwise.
About Time Warner Inc.
Time Warner Inc., a global leader in media and entertainment with
businesses in television networks, film and TV entertainment and
publishing, uses its industry-leading operating scale and brands to
create, package and deliver high-quality content worldwide through
multiple distribution outlets.
About Time Inc.
Time Inc. is one of the largest branded media companies in the world.
The company's magazines reach more than 110 million Americans each
month, and its websites attract nearly 50 million unique visitors each
month. With influential brands such as TIME, PEOPLE, SPORTS ILLUSTRATED,
InStyle, and REAL SIMPLE, Time Inc. is home to celebrated events and
franchises including the FORTUNE 500, TIME 100, PEOPLE's Most Beautiful
and SPORTS ILLUSTRATED'S Sportsman of the Year.
