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Time Inc. Stock Plunges After Ending Sale Discussions

Time Inc. Stock Plunges After Ending Sale Discussions
(GETTY/Kena Betancur)

Friday, 28 April 2017 08:37 AM

Time Inc.'s board of directors has called off discussions with potential suitors and has vowed to go it alone under the direction of CEO Rich Battista.

Time Inc., home of marquee magazine brands including Time, People, Sports Illustrated and Fortune, had accepted initial bids from a handful of companies in February. Those were known to have included magazine and TV station owner Meredith Corp. and an investor group led by Edgar Bronfman Jr.

Time's shares were down nearly 19 percent at $14.95 in premarket trading on Friday.

"We strongly believe in the future and potential of this company," said John Fahey, Time Inc.'s lead independent director. "The Board has full confidence in Time Inc. president and CEO Rich Battista and the management team to execute on the strategic plan."

The company reaffirmed its investor guidance for 2017. Time Inc. has had a rocky time as a publicly traded company since it was spun off from Time Warner in June 2014. The stock closed Thursday at $18.30. Shares have climbed sharply since last fall on acquisition rumors.

Under Battista, Time Inc. has been on a big push to mine its print resources to develop TV programs and digital video content.

"Time Inc. is a reinvigorated company uniquely positioned to succeed in the multi-platform media marketplace with an exceptional set of brands and assets, tremendous scale and significant untapped potential," Battista said.

"The company is better positioned to capitalize on this potential with its recent shift from a siloed, legacy publishing structure, to an integrated, enterprise platform structure. We are excited to execute on our plan as we have become a leader in digital and remain No. 1 in print ad revenue share. In addition, our transformation has brought a number of potential partners interested in working with us to unlock and accelerate value across our portfolio of brands."

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Time's shares were down nearly 19 percent at $14.95 in premarket trading on Friday.
time, sale, stock, price, shares
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2017-37-28
Friday, 28 April 2017 08:37 AM
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