Time Warner has set a date for the spin-off of its Time Inc. publishing unit: May 23.
The date came in a filing with the Securities and Exchange Commission on Thursday, which also included a shareholders' welcome letter from Time Inc. CEO Joe Ripp. "We are one of the largest branded media companies in the world, reaching more than 130 million people each month across print and digital platforms," Mr. Ripp Wrote, listing company titles such as People, Sports Illustrated, Time and InStyle.
But Time Inc. is also a challenged publishing company from which Time Warner is eager to untether its entertainment businesses, which include Warner Bros., Turner and HBO. The filing details Time Inc.'s performance in recent years, including its decline in both revenue and income.
Time Inc. expects its net debt to total $1.3 billion at the time of the spin-off, the result of buying U.K. magazine company IPC Media from Time Warner for $800 million and paying a special dividend to Time Warner of approximately $600 million, according to the filing.
"After the Spin-Off, we will have substantial indebtedness and the ability to incur significant additional indebtedness, which could adversely affect our business, financial condition and result of operations," the filing says.
The symbol for company shares on the New York Stock Exchange will be TIME.