Time Inc. Shares Soar On Report It Has Hired Bankers To Weigh Sale

Time Inc.’s stock price jumped about 7.9% in afternoon trading after The Wall Street Journal reported that it has hired Morgan Stanley and Bank of America to look at sale and partnership proposals.

The Journal notes that it’s “far from guaranteed” that a deal will take place.

Still, there’s clearly interest in the company that owns Time, People, Fortune, Sports Illustrated, and Entertainment Weekly.

Time’s stock rocketed late last month following the disclosure that Edgar Bronfman Jr., billionaire Leonard Blavatnik, and former Maker Studios chief Ynon Kreiz made a $1.78 billion offer that the board rejected.

The company’s value has increased 37.8% over the last month.

Bronfman and Blavatnik are partners at Warner Music, where Kreiz is a board member. Like Time Inc., the music company was spun off from Time Warner.

Time shares lost nearly 44% of their value over the last two years before last month’s increase. In September former Fox National Cable Networks and Gemstar-TV Guide chief Richard Battista became CEO, replacing Joe Ripp.

Early this year the company cut $100 million in costs — and recently took a $43 million restructuring charge. Battista told analysts that he’s “examining other ways to reduce the cost base where revenues are declining, and we are identifying other sources of efficiency” as it seeks to become “a truly digital first company.”

Wells Fargo Securities’ Eric Katz said last month that he “wouldn’t rule out” other bids. Meredith — publisher of Better Homes & Gardens and Parents — tried to buy Time Inc. in 2014 before Time Warner spun it off.

This article was printed from https://deadline.com/2016/12/time-inc-shares-soar-report-hired-bankers-weigh-sale-1201866971/