Time Inc Files To Spin-off From Time Warner

(RTTNews) - Time Warner Inc.'s (TWX) subsidiary, Time, Inc. Friday filed a information statement, to divest itself from the media conglomerate, and list as a standalone company. Pursuant to the filing, Time would list its common shares in 2014, but the number of shares to be sold or the ticker under which the company would trade were not divulged.

Time Inc. publishes 130 magazines, most notably its namesake, Time, and other magazines included are Sports Illustrated, Travel + Leisure, Food & Wine, Fortune, People, InStyle, Life, GOLF Magazine, Southern Living, Essence, This Old House, All You and Entertainment Weekly.

The publishing firm posted revenues of $2.39 billion for the nine months ended September 30, of which $1.26 billion were from advertising, $816 million from circulation, and $305 million of other revenues. For the same period, net income was $135 million.

Post the spin-off, Time Inc., said it will operate independently from Time Warner, and that its parent will no longer hold any equity interest in the company. Time Warner expects the partition to occur during the next year.

Meanwhile, the company in the filing added that the Laura Lang, chief executive of Time Inc. will continue to receive her base salary of $961,539 through November 2, 2015. Additionally, she is entitled to get lump-sum payments for the next two years, in line with the average of her 2012 bonus and target bonus. Lang received a bonus of $3 million in 2012, and is eligible for a prorated bonus of $2.3 million in 2013. Lang is also eligible for a $2.5 million payment in the form of a "transaction bonus," if she had stayed with the company through its spinoff.

The Warner Board considered the certain potential benefits in deciding to pursue the Spin-Off, of which strategic clarity and flexibility are one of the reasons. To develop a focused management, create incentives for its management and employees, and allow stockholder flexibility were the other reasons for divesting the business, the company said in the statement.