Time Warner will get out of publishing business in second quarter of 2014
Time Warner is delaying its planned spin-off of Time Inc., the company told investors Wednesday.
The publishing unit, which has been a drag on the media conglomerate's profits, was originally supposed to be spun off into a separate company in 2013. That date was later amended to be in the first quarter of 2014.
Now, Time Warner Chief Executive Officer Jeff Bewkes said the company is on track to complete the spin-off by the second fiscal quarter of next year. He said that the magazine company's newly minted CEO Joe Ripp had made “great progress” in preparing Time Inc. for its separation and said that Form 10 outlining spin-off plans will be filed in the coming weeks.
Bewkes described the move as part of an effort to refocus Time Warner into being a “pure play content company” with an emphasis on television and video.
No doubt, it's also being done to keep the media conglomerate's divisions firmly in the black. During the company's most recent quarter, revenues at the publishing division dropped 2 percent to $818 million on lower subscription and advertising sales, while operating income fell 9 percent to $115 million.