Time Warner has found its magazine division all too quittable: after an unsuccessful attempt to sell off the print division which puts out Time, People, Sports Illustrated, it has decided to just split it off into its own business, and hope stock investors come along who like to look at glossy magazine. It’s a similar to the move Mr. Burns Rupert Murdoch pulled recently, splitting Fox into two divisions: The Fox Group, which includes movies and TV, and News Corp., which includes the newspaper division. It isn”t the first time Warners has divested itself of a pesky business division — the the last 10 years they’ve spun off Warner Music, AOL, Time Warner Cable, Warner Books and now their magazines.
Time Warner chairman-CEO Jeff Bewkes is fully absorbed in the challenges of making and managing content in a rapidly changing video market. He said the newly streamlined Time Warner will now be able to focus entirely on its television networks, film and TV production business. He said the decision to initiate a split came “after a thorough review of options” and “will provide strategic clarity for Time Warner.” Time “will also benefit from being a standalone public company able to attract a more natural stockholder base,” meaning investors who like the magazine business.
Translation: “By leaving the baby in a sack along the road, it will learn valuable skills of independence.” As harsh as it sounds the magazine division just wasn’t a huge profit center, accounting for a mere $3.4 billion of Warner’s $28.7 billion 2012 revenue, on operating revenue was $420 million. A couple of people have written here in wondering what’s to become …read more Via: The Beat