What's going on?

Time Inc., the publisher that owns Sports Illustrated, People and TIME, has hired advisors as it mulls selling itself (according to The Wall Street Journal). Time Inc. was the target of a takeover attempt in November by a group of individuals, including the former CEO of Warner Music Group.

What does this mean?

Time Inc. was separated from Time Warner in 2014. Since then, Time Inc.�s shares have fallen by 50% as the environment for print media has become increasingly challenging. Digital media has siphoned off eyeballs and ad spend from print magazines and newspapers. The relatively low value of the company appears to have sparked the interest of potential buyers � who presumably feel they can do a better job of monetizing Time Inc.�s titles.

Why should I care?

For markets: Time Inc.�s stock price is up 40% from November.
In November, a group of people (including the former CEO of Warner Music) reportedly offered to pay about $1.8 billion for the company, which at the time was almost 40% above Time Inc.�s stock price. The Wall Street Journal reported on Thursday that Time Inc. had hired advisors to help decide what to do � which, of course, suggests they are seriously considering selling (and, perhaps, that there could be more than one potential buyer). Both of those things are good news for the stock price!


The bigger picture: Brands have value � and Time Inc. has some great brands.
Earlier this week, TIME magazine named Donald Trump as its person of the year � which made headlines around the world. That�s a reminder that the TIME brand resonates with people: rightly or wrongly, people look at TIME to credibly appoint a �person of the year.� Similarly, Sports Illustrated is a trusted name in sports media and its swimsuit edition is a major media brand unto itself. If someone does buy Time Inc., they will likely be doing so for the brands.