Time Warner to spin off publishing unit Time Inc

The announcement comes after unsuccessful talks to sell some of the titles in the Time Inc. group,and as rival News Corp. is undergoing a similar split of its entertainment and publishing operations.

Time Warner said its board had authorised management 8220;to proceed with plans for the complete legal and structural separation of Time Inc. from Time Warner8221; which would make the publishing unit a 8220;an independent,publicly traded company.8221;

The company publishes 21 US magazines,including its flagship Time magazine,People,Fortune and Sports Illustrated. It has 25 websites and several international

magazines including global editions of Time and Fortune and publishing operations in Britain and Mexico.

Bewkes said that 8220;after a thorough review of options,we believe that a separation will better position both Time Warner and Time Inc.8221;

He added that 8220;a complete spin-off of Time Inc. provides strategic clarity for Time Warner Inc.,enabling us to focus entirely on our television networks and film and TV production businesses,and improves our growth profile.8221;

Time Inc.,he said,will also benefit 8220;from the flexibility and focus of being a stand-alone public company and will now be able to attract a more natural stockholder

base.8221;

Time Inc. chief executive Laura Lang has agreed to remain in the job until after a successor has been identified,the company said.

8220;Laura indicated to me that we should find a different kind of CEO for this new public company,and I respect her decision,8221; Bewkes said.

8220;She has been a great partner who has given Time Inc. forward momentum to make this transition possible,and I look forward to working with her to select the right leader to head the company as an independent entity.8221;