Whilst reports seem to indicate that Time Inc has been rejecting takeover offers from interested buyers, all these offers seem to also be boosting the company’s share value.
Time Inc is an American mass media company with quite a big history behind it. Founded in 1922 and based in New York City, New York, the company has ownership and publishing rights over more than 100 magazine brands.
Amongst its most famous is its name bearer, the Time magazine. Other widespread magazines include Sports Illustrated, Fortune, Entertainment Weekly, and Travel + Leisure.
Time Inc. also expanded to the online media with its LIFe.com website and also the MIMI, and MyRecipes, amongst others.
Following its 1990 merger with Warner Communication, the company was part of the Time Warmer media conglomerate. However, Time Inc. spun off in June 2014, when the merger broke.
However, the media empire has been facing tougher times recently as the printed press of all types sales seem to be falling with the rise of the Internet.
Various factors including the spin-off debts and revenue gains seem to have left the company struggling.
As the Time Inc changed its CEO, it also seems to have changed its direction as the company has shifted towards a more digital dependent model.
The company’s former CEO Joe Ripp, and one of the reasons behind the spinoff as he steered Time Inc in that direction stepped down from the position earlier this year.
As he cited the cause as being health issues, Ripp was replaced with Rich Battista, who is steering Time Inc towards being a multi-platform digital company.
Although the printed press still makes up most of the company’s revenue, Battista, with his cable-related background, has shifted the focus towards the digital.
However, the change will not be an easy one, as his first CEO earnings call seems to call. According to Battista, Time Inc will probably have no revenue gains in 2016, as he conceded during the third quarter earnings report.
As the company is still finding its path, a somewhat expected unexpected sales offered was received.
Reports showed that Edgar Bronfman Jr. was joined by two other billionaires in making an offer to the company.
The initial offer put out by the three billionaires saw a $18 per share value with a total deal value reaching up to $1.8 billion per deal.
Following the deal reports, Time Inc shares marked an increase on the market as they increased to a $16 per share value on Monday.
This marked quite a significant increase as the company’s shares closed at a $13.60 value on Friday.
It also marked a value regain as the Time Inc shares have been falling since its $23 IPO price from back in June 2014.
However, new reports seem to indicate that Time Inc has decided to reject the offer. The exact faith of the Bronfman, Ynon Kriez, and Assess Industries offer is as yet unknown as Times Inc has not issued an official statement.
However, market analysts consider that the offer is not yet dead as an updated, possibly increased deal could be resubmitted.
Other reports also indicate that a special meeting for a deal reconsideration could be invoked by 25 percent of the Time Inc. shareholders.
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