Time Warner is getting rid of Time. The reason? They can't sell space. Even with a disdainful picture of Glenn Beck on the cover.
CHICAGO (Reuters) - Time Warner Inc will eventually sell the Time Inc magazine unit and could buy holdings in its core entertainment category, Gordon Crawford, managing director of its largest shareholder, said during a presentation this week.How about acquisitions?
"Time Warner just spun off their cable division, they are going to sell their print division, they are going to spin off AOL and they're just going to be Warner Brothers, HBO and the Turner Networks," said Crawford, managing director of The Capital Group.
Time Inc's magazines include popular titles such as People and Sports Illustrated. In the second quarter, revenue at Time Inc publishing, the largest U.S. magazine publisher, fell 22 percent to $915 million due to a 26 percent decline in advertising revenue.I guess their success will depend on whether they can strengthen the weak companies they buy. With the fringe media in serious decline due to being mainly left wing in a center-right country (not to mention the internet) their days are numbered.
While Crawford did not name specific acquisition targets, he did say there would be a "winnowing process" during which weaker companies in the sector would be gobbled up.
Meanwhile FOX seems to be doing fine. In the middle of one of the greatest economic downturns in decades. Well that is what downturns are for. The winnowing out of weak sisters. I expect the NYTs will not be far behind.