Time Inc shares drop on debut after Time Warner split
- 9 June 2014
- From the section Business
Shares in newly spun-off Time Inc - publisher of magazines including Time, People and Fortune - plunged 4% in their debut on the New York Stock Exchange.
Last year, parent Time Warner decided to spin off the publisher in order to focus on its entertainment businesses.
Time Inc has approximately 90 magazines and 45 websites.
It is also saddled with approximately $1.3bn (£773m) of debt, which could be weighing on investors.
As recently as 2006, Time Inc produced about $1bn in earnings. However, current earnings are closer to $370m.
That has forced the publisher to lay off hundreds of workers in an effort to trim costs.
It is also moving out of its long-time home - the Time-Life building in midtown Manhattan - to a less expensive location downtown later this year.
Several media conglomerates, including Rupert Murdoch's News Corporation, have spun off their underperforming print news businesses in an effort to save money in recent years.
Time Magazine was founded in 1923 by Henry Luce and it is the oldest news magazine in the US.