On Wednesday, the company announced that its iconic magazine publishing unit, Time Inc., will become a separate company again by year’s end. The magazine unit, whose roster of titles includes Sports Illustrated, People and Time, is estimated to be worth about $2.5 billion, the Associated Press notes.
Investors liked the news, sending Time Warner shares up more than 2% in Thursday morning trading.
Spinning off the magazine business will allow Time Warner to concentrate on its television and film businesses, company officials said.
Revenues at the magazine unit have fallen sharply in recent years. Earlier this year, the unit announced hundreds of layoffs.