Time Warner Paying $475 Million for Times Mirror Magazines
Tribune, which owns the Chicago Tribune and the Los Angeles Times, began shopping Times Mirror Magazines earlier this year after Tribune acquired Times Mirror. Times Mirror Magazines publishes U.S. titles such as Golf and Field & Stream. Time Warner reportedly topped a joint bid from New York Times (NYT) and closely held American Media, which publishes the National Enquirer tabloid.
The deal will push Time Warner's claim of U.S. magazine advertising revenue to roughly 25% from around 22.5% -- nearly three times the market share claimed by its nearest competitor.
"We're delighted to have the Times Mirror titles become part of Time Inc.," said Don Logan, chairman and chief executive of Time Inc., in a statement. "We think that their vertical sports enthusiast titles are a perfect fit with the Sports Illustrated group."Tribune said it would use proceeds from the sale to reduce debt and repurchase stock. It said it expects its debt to be about $4 billion by year-end. It also said it had repurchased 19 million shares this year. Tribune said in a statement that the deal with Time Inc. is expected to close in the fourth quarter and is subject to regulatory approval. Time Warner shares were higher in early morning trading, rising $1.20 to $68.66. Tribune shares were unchanged at $36.44.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV