Our top priority in the spinoff is to make sure that we put Time Inc. in the best possible position to succeed. So rather than rush to complete the transaction this year, we’ve decided that it’s prudent to give Joe some time to further refine Time Inc.’s strategic direction and as a result, we now expect to complete the spinoff early next year.
The CEO search apparently took longer than expected after an earlier front runner declined and Joe Ripp, Time’s new CEO, won’t be officially starting until September. He certainly will need to figure something out for the struggling unit although not sure what a couple of months will do. Advertising and subscription income continued to decline in the most recent quarter, although the unit witnessed a jump in operating income due to ‘operational cost savings’ or firing people.
In the meantime, we can enjoy these TV ads for People magazine. Maybe Mr. Ripp will ‘refine’ this away…
http:/www.youtube.com/watch?v=ozRi6p7tbY4
Disclosure: Author is long shares of TWX
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