LOS ANGELES -- Meredith Corp., the publisher of magazines such as Better Homes and Gardens and Fitness, is in early talks with Time Warner Inc. about buying several magazines from it, including People, InStyle and Real Simple, according to published reports.
The reports by Fortune magazine and other news outlets cited unnamed people familiar with the matter and come two weeks after the magazine unit, Time Inc., said it was cutting six per cent of its global staff of 8,000, or about 500 people. Companies sometimes lay off workers before selling assets to make them more profitable and attractive to buyers.
Fortune is also owned by Time Inc. and said in its report it might not be part of a sale. Time and Sports Illustrated also would be excluded under a scenario under discussion. The New York Times added that Money magazine would remain with Time Warner and said $1.75 billion was being discussed as a sales price.
According to Fortune, one of the advisers involved was Chicago merchant bank BDT Capital Partners, which is run by former Goldman Sachs executive Byron Trott.
Time Warner Inc. CEO Jeff Bewkes told CNBC last week that the company was considering separating Time magazines from the rest of the company but that no decision had been made.
-- The Associated Press