Yesterday, it was announced that Time Inc. would be selling its majority stake in #Essence Magazine. Back in 2000, they purchased a 49-percent stake in Essence Communications Partners and then bought another 51 percent in 2005. According to reports, the sale comes just three months after Time decided to focus more on its core brands which include People, InStyle, Real Simple and TIME.
Time CEO Rich Battista says that there is a “real upside” for Essence and lists their growing digital presence and strong relationships with marketers as reasons for that. “We want to unlock the value here,” he told The Wall Street Journal. “We think the best way to do that is to bring in a strategic partner with investment capital. We’re keeping an interest because we see [a] real upside.”
Via Atlanta Black Star:
“When Time Inc. decided not to sell itself earlier this year, The New York Post reported it mentioned their sell-offs could occur through “selective portfolio rationalization.” However, Battista told WSJ he still saw Essence as part of the company’s “core” and noted the magazine’s increased digital presence and event business. One of those event businesses, Essence Festival, welcomed 470,000 guests to New Orleans this year, which is an increase of 20,000 since last year, The Times-Picayune reported.”
Battista hope to have reached a deal by the end of the year.
TSR STAFF: Talia O. @theclosetratchet on IG, @tallyohhh on Twitter
Source: https://www.thestreet.com/story/14240222/1/time-inc-to-sell-majority-stake-in-essence-magazine.html
