Time spins backwards on decision not to sell business

Time Inc stock reversed recent gains after the board decided not to sell the publishing business as it was being "reinvigorated" under a new strategy.

Despite "a number" of expressions of interest, John Fahey, senior independent director at the magazine and digital publisher, said the board "strongly believe in the future and potential of this company" and had full confidence in chief executive officer Rich Battista.

The board also affirmed that Time remained on track with its financial outlook for the year.

Battista, who joined the Time magazine, People and Sports Illustrated publisher last September, has embarked on a strategic plan that encompasses growing Time's digital audience and revenue led by branded/native content solutions and video; diversifying revenues through brand extensions into TV, events, licensing, new products and strategic partnerships; selective trimming of the portfolio; and continued aggressive cost cutting.

"Time Inc. is a reinvigorated company uniquely positioned to succeed in the multi-platform media marketplace," Battista said in a statement.

"The company is better positioned to capitalize on this potential with its recent shift from a siloed, legacy publishing structure, to an integrated, enterprise platform structure."

With a digital audience of 133m unique users, Battista said Time's "iconic brands and premium, safe content" could appeal to the many advertisers that are "looking for fewer, bigger partners".