Time Inc., the Unwanted Party Guest Being Pushed Out the Door

Media decoder reporting:
On Wednesday, Time Inc., the largest magazine publisher in the country, found itself at the wrong end of a 10-foot pole. Its corporate parent, Time Warner, which has a broad and lucrative array of entertainment assets, was making plans to spin off much of the tattered print unit in a shotgun marriage with Meredith, a Midwest-based company that was trying to do much the same thing.
Under the plan, which is far from final, the two companies would contribute magazines to create a new, publicly held company that would be left to make its own way.
In shearing off its print division, Time Warner is following a path laid down by News Corporation, which announced last year that its entertainment assets and print assets would be split into two divisions. Its stock hit a five-year high when the plan was floated last June, and sometime early this summer there will be two companies – Fox Group and News Corporation – that will allow the fast-growing film and television assets to grow unencumbered by legacy print businesses.
Print publishing may have lost significant currency with consumers and advertisers in a digital age, but investors have a far deeper animus. They see little possibility that the business as a whole will right itself, and they find its lack of growth wanting compared to the cable, television and film businesses that are now the epicenter of the media business.
http://mediadecoder.blogs.nytimes.com/2013/02/14/time-inc-the-unwanted-party-guest-being-pushed-out-the-door/