Time Inc. sets deadline for bids from potential buyers
Time Inc. has asked those interested in buying the media company to turn in bids by next week.
Five companies have expressed interest in acquiring all of Time Inc., but the company is also considering taking an investment from private investors and may choose not to proceed with a sale at all, according to a company official with knowledge of the potential deal who was not authorized to comment publicly.
Among the companies interested are Meredith Corp. and an investor group led by Edgar Bronfman Jr., who is the managing partner of Accretive LLC and a former chairman and CEO of Warner Music, and Access Industries founder Len Blavatnik. A publicly traded company is among the other three bidders, according to Bloomberg, which reported the development Tuesday citing people familiar with the matter.
Shares of Time Inc. (TIME) were up 6.5% to $18.70 midday Wednesday and have risen more than 16% over the last three months amid speculation about an acquisition.
The investor group and Meredith Corp., which publishes Better Homes & Gardens, Family Circle and Shape, and has 17 TV stations in cities including Atlanta and Phoenix, had already signed nondisclosure agreements as of last month to gain access to Time Inc. financial data and meet with senior execs.
In 2013, Meredith reportedly broached a merger deal with Time Inc., which was spun off from Time Warner in June 2014. Bloomberg reported in January that Meredith had again contacted Time Inc. about a merger.
Time Inc. CEO Rich Battista sent a holiday note to staffers in December in which he told employees “it would not be surprising if third parties were to show interest in our company,” according to a copy obtained by The Wall Street Journal.
Rumors about potential bidders began in November when the New York Post reported that the Accretive-Access group had approached Time Inc., but had been rebuffed.
Time Inc., which is the nation’s largest magazine publisher, has faced revenue challenges as advertisers spend less on print ads and circulation has declined. The company’s 2016 revenue fell about 1% to $3.08 billion, while the company posted a loss of $48 million, compared to a loss of $881 million in 2015.
Digital advertising revenue rose to $512 million in 2016, which led to an overall 3% increase in advertising revenues. Circulation revenues decreased 9% to $944 million, as more consumers shifted to digital media, which has lower subscription revenues, and newsstand sales dipped 16%.
As part of its growing focus on digital and video, the company last month launched a new Time Health wellness, medical and health hub online with new, free health-specific Time Health magazines due in physicians' offices beginning in mid-2017.
Follow USA TODAY reporter Mike Snider on Twitter: @MikeSnider.