Time Warner Inc. 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.
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