FORTUNE -- Time Warner announced Wednesday that it plans to cut its Time Inc. magazine unit loose, spinning it off into an independent public company. There are all sorts of details yet to be worked out, but the largest question is whether this deal will actually work. And, by that, I mean create additional value.
Time Inc. would become the third major Time Warner (TWX) unit to be spun out as an independent company, following Time Warner Cable (TWC) in 2007 and AOL (AOL) in December 2009. The three businesses don't have much in common beyond an estranged parent, but perhaps we can determine a theoretical pattern:
Time Warner Cable: More valuable today.
AOL: More valuable today.
Time Warner: Mixed bag
Again, we're talking about magazines this time around -- not cable television nor pure digital content. And the above statistics are points in time that may have been influenced as much by macro market conditions as by the actual underlying businesses. But there is at least some historical reason to be optimistic that Time Inc. might do better on its own than as part of Time Warner.
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Time Warner is spinning off its magazine unit. Now what?
FORTUNE -- Well, we're not being sold. But we're also not going to be part of Time Warner anymore either.
Time Warner (TWX) this evening announced that it plans to spin off its Time Inc. magazine unit, which includes Fortune, after sales talks with Meredith Corp. (MDP) collapsed. Lots of unanswered questions right now, with these three at top of mind:
1. How much MOREDan Primack - Mar 6, 2013 6:18 PM ET
Meredith Corp. wants to buy People magazine, but it's going to need help.
FORTUNE -- As Fortune reported earlier Wednesday, Time Warner is in talks to sell most of its magazine assets to Meredith Corp. The deal could be valued at around $2.5 billion, according to several reports. But here's the thing: Meredith (MDP) only has a market cap of approximately $1.7 billion, and an enterprise value that's just a hair above $2 MOREDan Primack - Feb 13, 2013 5:50 PM ET
Exclusive: Meredith is in talks with media giant Time Warner to buy most of its Time Inc. publishing business.
By James Bandler, Doris Burke, and Jennifer Reingold
(Updated to include news of Meredith as the buyer.)
FORTUNE -- Media giant Time Warner has begun discussions to separate itself from Time Inc., its $3.4 billion (in annual revenue) publishing division, according to three people familiar with the matter. Meredith, the Des Moines-based publisher of Family Circle MOREFeb 13, 2013 12:53 PM ET
AOL has never been shy about acquisitions. But how they pull them off sure has changed.
AOL Inc. has the same initials and hunger for takeovers that the old America Online did—but it does them in a very different way. The new AOL uses a takeover currency that the old AOL almost never used: it's called cash.
The old AOL (AOL) did a ton of takeovers, too, but almost always used a MOREAllan Sloan, senior editor-at-large - Feb 8, 2011 11:29 AM ET
The perverse impact of deregulation is that the FCC would be less involved with the media industry if it simply had said "no deal" to the Comcast-NBC merger.
By Dan Mitchell, contributor
Later this week -- January 28th -- will be the first official day that Comcast is in control of the operations of NBC Universal. But as is turns out, it's not the only one sitting in the driver's seat: The MOREJan 24, 2011 1:18 PM ET
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