The future of Time Inc. has been up in the air for several months now as the media giant has been firmly on the market. Time turned down a takeover offer back in November and back in March sought more acquisition offers.
After putting up the “for sale” sign so publicly, the news that broke this morning might have come as a major surprise. In an announcement, Time Inc said that it would not be sold and would instead “pursue its strategic plan.”
SI parent Time Inc. says this AM it won't sell, "will continue to pursue its strategic plan."
— Eric Fisher (@AEricFisher) April 28, 2017
Time Inc: "We strongly believe in the future and potential of this company."
— Eric Fisher (@AEricFisher) April 28, 2017
Time Inc, like many legacy publishers, struggling with decline in print & had been on block. But leaning into digital, events, films, etc
— Eric Fisher (@AEricFisher) April 28, 2017
It’s no secret that it’s not the easiest time to be in the print journalism business. As big of a name as Time Inc is (and remember it’s also Sports Illustrated’s parent company) the economic realities are still fairly harsh. Maybe it hasn’t made the wider cultural impact as the recent ESPN layoffs, but we’ve seen SI lay off multiple staffers in past years.
With the no sale news, investors seem less than confident in the “strategic plan” because shares fell by a significant amount straight after the announcement from the media company.
$TIME Inc. shares fall 19% after board says it will not sell the company, but instead continue with strategic plan.
— Trey Williams (@Trey3Williams) April 28, 2017
Already analysts are predicting a bit of a grim outlook for the magazine giant.
https://twitter.com/bobbierman/status/857929400389701632
And if you read the quotes in here, it looks like Time could be facing at a similar situation to ESPN, at least in trying to reimagine their business model and deal with a more digitally focused media world. We’ve seen major media giants struggle to adapt with the changes happening so quickly to the industry. With investors pessimistic and more reshuffling likely ahead, it looks like Time Inc and Sports Illustrated will have to hold firm for a bumpy ride for the foreseeable future.
