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"Joe is a seasoned executive who has been immersed in the
intersection of digital, advertising and publishing for the past
decade," Time Warner CEO Jeff Bewkes said in a statement. "He is
respected as a strategic leader who has delivered financial results
throughout his career, and he also happens to have a thorough
understanding of Time Inc.'s business."
The CEO search has been underway since Time Warner said in March
that it would spin off Time Inc. into a separate company,
abandoning talks to combine most of its magazines with rival
Meredith Corp. Time Inc. CEO Laura Lang told staffers that she
would not continue in her post after the split. "After considerable
thought, I have decided that taking the company through a
transition to the public markets is not where my passion lies," she
said in a memo then.
Mr. Bewkes thanked Ms. Lang today for her work. "With Joe's
appointment, I want to thank Laura Lang for her work in helping to
position Time Inc. so well as it prepares for its next chapter," he
said in a memo to staff. "I am pleased she will be taking an office
at Time Warner and serving as an advisor to our company through the
separation."
Now Time Inc. employees will hope their latest CEO sticks. Ms.
Lang has only held the CEO post since January 2012, and became a
lame duck 14 months after arriving, but her tenure looks enduring
by comparison with her predecessor, Jack Griffin, who exited after
less than five months.
But the selection alone may help stabilize Time Inc. during a
time of transition. Paul Caine, a 23-year veteran of the company
and its chief revenue officer, and InStyle publisher Connie Anne Phillips
have departed since the spin-off was announced, both reflecting and
increasing the state of flux in the company's halls.
Many observers had predicted that the CEO opening would go to
Michael Klingensmith, CEO of Star Tribune Media and a former CFO of
Time Inc. An internal candidate, Time Inc. CFO Howard Averill, was
named CFO at Time Warner earlier Monday.
But whoever took over was going to inherit a company facing some
long-term challenges, including difficulties in print advertising.
Ms. Lang's hire from digital agency Digitas, where she was CEO, was in part an
effort to find better footing in new media. But Time Inc.'s
first-quarter revenue dropped 5% to $737 million as as circulation
revenue fell 11%. Its ad revenue edged up 2% because the company
took back management of SI.com and Golf.com, whose addition made up
for magazine ad revenue. In January Time Inc. laid off about 500
employees, or 6% of its total staff
Spinning off the magazine business will let Time Warner focus on
its more profitable TV and film businesses. The company also argues
that the split help Time Inc. attract a more natural shareholder
base, though the new company will likely be laden with debt.
Other companies have taken similar steps as investors have
cooled on publishing companies. News Corp. recently
divided its newspaper operations from its TV and movie businesses.
Tribune Company said earlier this month that it will make a similar
move.
"Knowing Time Inc. as I have, I'm confident that it has all the
elements for success as it enters a new chapter as an independent
public company -- industry leadership, strong executives, powerful
brands, great journalistic talent, and a track record of
innovation," Mr. Ripp said in the Time Warner statement announcing
his selection.
